Full text of Press Releases of the United States Department of the Treasury : Volume 146

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LIBRA.RY
pnoM

50~O

JUN 1 ~ 1972

TREASURY DEPARTMENT

---~-

United States Savings Bonds Issued and Redeemed 'l'il1"'OuglI November 1964
(Dollar amounts in millions - rounded and will not necessarily add to totals)
A"mount-·_·--:A"mo"Uilt- %bu ts tanctIili
AmoUnt
Issued };,/ Redeemed]/ Outstanding 2/ of Amt.Issued

11ATURED
Series A-1935 - D-1941 ••••••••••
Series F & G-1941 - 1952 ••••••••

.22
.36

5,003
29,521

4,992
29,415

106

1,570
6,961
11,232
12,940
9,901
4,245
3,830
3,847
3,704
3,158
2,728
2,809
3,063
2,955
2,925
2,813
2,577
2,355
2,155
2,022
1,844
1,661
1,504
625
332

269
1,163
1,849
2,295
2,037
1,126
1,236
1,377
1,439
1,330
1,159
1,260
1,571
1,757
1,963
1,855
1,8ll
1,892
1,818
1,936
2,128
2,162
2,730
2,451
27

14.63
14.32

Unclassified ••••••••••••••••••

1,839
8,124
13,081
15,235
1l,938
5,371
5,066
5,224
5,143
4,488
3,887
4,069
4,635
4,712
4,888
4,669
4,388
4,246
3,973
3,958
3,972
3,822
4,234
3,076
359

Total Series E ••••••••••••••••

134,396

93,756

40,640

30.24

Series H (19,2 - Jan. 19$7) ~/ ••
H (Feb. 1957 - 1964) •••••

3,670
6,458

1,601
914

2,069
5,545

56.38
85.86

Total Series H ••••••••••••••••

10,128

2,515

7,614

75.18

Total Series E and H ••••••••••

1L4,524

96,271

48,254

33.39

Series J and K (1952 - 1951) .~ ••

3,720

2,282

.!!Jl,438

38~

34,407
98,553
1132,900

117
49,692
49,809

.34
33.52
27.25

UN}'.A TOREn

Series E: 3/

........ ...........

"
1941
1942 •••••••••••••••••••••
1943 •••••••••••••••••••••
1944 •••••••••••••••••••••
1945 •••••••••••••••••••••
1946 •••••••••••••••••••••
1947 •••••••••••••••••••••
1948 •••••••••••••••••••••
1949
1950 •••••••••••••••••••••
1951 •••••••••••••••••••••
1952 •••••••••••••••••••••
1953 •••••••••••••••••••••
1951. •••••••••••••••••••••
1955 •••••••••••••••••••••
1956 •••••••••••••••••••••
1957 •••••••••••••••••••••
1958 •••••••••••••••••••••
1959 •••••••••••••••••••••
1960 •••••••••••••••••••••
1961 •••••••••••••••••••••
1962 •••••••••••••••••••••
1963 •••••••••••••••••••••
0 ••••••••••••••• •••••

1964 •••••••••••••••••••••

3h,524
Total matured •••••••
Total unmatured ••••• 148,244
Grand Total ••••••••• 182,768
17 Includes accrued discount.
£( Current redemption value.
At option of owner bonds may be held and
will earn interest for additional periods
after original maturity dates.
4/ Includes matured bonds which have not been
- presented for redemption.
All Series

BUREAU OF THE PUBLIC DEBT

14.14

15.06
17.06
20.96
24.40
26.36
27.98
29.63
29.82
30.97
33.89
37.29
40.16
39.73
41.27
44.56
45.76
48.91
53.58
56.57
64.48
79.68
7.52

--------_.-.

United States Savings Bonds Issued and Redeemed Through November 1964
(Dollar amounts in millions - rounded and will not necessarily add to totals)
-Amount
.... .. -....
COuts tanding
Amount
AmOUnt
au ts tanding 'III'Il
2/ of Alnt.Issued
Issued Y Redeemed
-.---~, -~-

--,

--~

HATUREl>
. Series A-1935 - D-1941 ••••••••••
Series F & G-1941 - 1952 ••••••••

5,003
29,521

4,992
29,415

11
106

.22
.36

1,570
6,961
11,232
12,940
9,901
4,245
3,830
3,847
3,704
3,1$8
2,728
2,809
3,063
2,955
2,92,5

269
1,163
1,A49
2,295
2,037
1,126
1,236
1,377
1,439
1,330
1,159
1,260
1,571
1,757
1,963
1,855
1,811
1,892
1,818
1,936
2,128
2,162
2,730
2,L51

Unclassified ••••••••••••••••••

1,839
8,124
13,081
15,235
1l,938
5,371
5,066
5,224
5,143
4,488
3,887
4,069
4,635
4,712
4,888
4,669
4,388
4,246
3,973
3,955
3,912
3,822
4,234
3,076
359

14.63
14.32
14.14
15.06
17.06
20.96
24.ho
26.36
27.98
29.63
29.82
30.97
33.89
37.29
40.16
39.13
41.27
Wl.56
45.76
48.91
53.58
56.57
64.48
79.68
7.52

Total Series E ••••••••••••••••

134,396

I 93,756

40,640

30.24

H (Feb. 1957 - 1964) •••••

3,670
6,458

1,60:L
911

2,069
5,545

56.38
85.86

Total Series H ••••••••••••••••

10,128

2,515

7,614

75.18

Total Series E and H ••••••••••

l44,524

96 ,(.'"}T-~

48,254

33.39

Series J and K (1952 - 1957) .~ ••

3,120

2,2?~

WL,438

38.66

34,407
98,553
1132,9SO

117
49,692
49,809

.34
33.52
27.25

TURED
Series E: 3/
1941: •••••••••••••••••••••
1942 •••••••••••••••••••••

UN}I.A

19L3
19L.4
19L5
19L6
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
196L

•••••••••••••••••••••

•••••••••••••••••••••
• • • • • II • • • • • • • • • • • • • • •

•••••••••••••••••••••

•••••••••••••••••••••
•••••••••••••••••••••
•••••••••••••••••••••

•••••••••••••••••••••
•••••••••••••••••••••
•••••••••••••••••••••
•••••••••••••••••••••

•••••••••••••••••••••
•••••••••••••••••••••
•••••••••••••••••••••

•••••••••••••••••••••
•••••••••••••••••••••

Series H (1952 - Jan. 1957)

11 ••

3h,524
Total matured •••••••
Total unmatured ••••• 148,244
Grand Total ••••••••• 182,768
1/ Includes accrued discount.
~ Current redomption value.
At option of owner bonds may be held and
will earn interest for additional periods
after original maturity dates.
4/ Includes matured bonds which have not been
All Series

11
-

nrp~pnt~rl rnr r~demntion.

2,813

2,577
2,355
2,155
2,022
1,844

1,661
1,504
625
332

I
I
i

BUREAU OF THE PUBLIC DEBT

United States Savings Bonds Issues and Redeemed Tfirough December1 1964
(Dollar amounts in millions - rounded and will not necessarily add 'to totals)
Amount
Issued 1/
-MATURED
Series A-1935 - D-1941 •••••••••••
Series F & G-1941 - 1952 •••••••••
Series J and K - 1952 ••••••••••••

:% outstand1ij
Amount
Amount
Eedeemed 11 Outstanding 2/ of Amt.lssitd

5,003
29,521
400

4,992
29,418
355

11
102
45

.22
.35
1l.2;

1,572
-6,968
11,243
12,956
9,912
4,250
3,836
3,853
3,711
3,165
2,134
2,816
3,013
2,970
2,934
2,820
2,584
2,363
2,163
2,031
1,855
1,674
1,530
726

210
1,161
1,842
'2,293
2,037
1,125
1,235
1,375
1,431
1,328
1,151
1,255
1,566
1,747
1,962
1,855
1,810
1,890
1,811
1,933
2,124
2,156
2,710
2,669

14.67
14.28
14.08
15.04
17.05
20.93
24.36
26.30
27.91
29.56
29.74
30.83
33.76
37.04
40.07
39.68
U.18

1958 ••••••••••••••••••••••
1959 ••••••••••••••••••••••
1960 ••••••••••••••••••••••
1961 ••••••••••••••••••••••
1962 ••••••••••••••••••••••
1963 ••••••••••••••••••••••
1964 ••••••• ~ ••••••••••••••

1,841
8,128
13,085
15,249
11,949
5,375
5,070
5,229
5,148
4,492
3,891
4,071
4,639
4,717
4,896
4,675
4,395
4,253
3,980
3,964
3,979
3,830
4,241
3,395

Unclassified. ,••••••••••••••••••

380

393

-14

Total Series E••••••••••••••••• 134,870
Series H (1952 - Jan. 1957) 1/...
3,610
H (Feb. 1957 - 1964) ••••••
6,505
Total Series H••••••••••••••••• 10,175

94,131
1,619
930
2,549

40,739
2,051
5,576
1,627

30.21
55.89
85.72
74.96

Total Series E and H••••••••••• 145,045

96,680

48,366

33.35

3,322

1,953

1,368

41.18

) Total matured •••••••• 34,924
All Series, Total unmatured •••••• 148,361
Grand Total •••••••••• lB3,291

34,165
98,633
133,398

158
49,734
49,892

.45
33.52
27.22

UNHATURED
Series E: Y
1941 ••••••••••••••••••••••

1942 ••••••••••••••••••••••

1943 ••••••••••••••••••••••
1944 ••••••••••••••••••••••

1945 ••••••••••••••••••••••

1946••••••••••••••••••••••

1941 ••••••••••••••••••••••
1948 ••••••••••••••••••••••
1949 ••••••••••••••••••••••
1950 ••• ~ ••••••••••••••••••
1951 ••••••••••••••••••••••

1952 ••••••••••••••••••••••
1953 ••••••••••••••••••••••
1954 ••••••••••••••••••••••
1955••••••••••••••••••••••
1956 ••••••••••••••••••••••
1957 ••••••••••••••••••••••

Series J and K (1953 - 1957) •••••

"JJ

Includes accrued discount.
Current redemption value.
At option of owner bonds may be held and
will earn interest for additional periods
after original maturity dates.

,
c..

44.44

45.65
48.76
53.38
56.29
63.90
78.62

BUREAU OF THE PUBLIC DEBT

United States SavinC3 Bonds I.s:..;ucs ~nd Redeemed Throl:r;h ~~ccmber, 1;)64
(Dollar- amounts in millions - rounded and will not r.oces:..;ar':'ly add to tc-::'J.l~;
Amount

Issued. 1/

Amount
%Outsf::illdingj,,"1ount
Lcccerl".ed 1/ Outstanding 2/ of P_rrt. Ts~;ucd

1AT ffi tED

Series A-1935 - D-1941 •••••••••••
Series F & G-1941 - 1952 •••••••••
.Series J and K - 1952 ••••••••••••
001ATURED
series E: '}/
1941 ••••••••••••••••••••••
1942 ••••••••••••••••••••••

1943 ••••••••••••••••••••••
1944 ••••••••••••••••••••••

5,003
29,521
400

4,992
29 ,'-~18
355

1,841

1,5'(2
6,968
11,243

8,12R

1956 ••••••••••••••••••••••
1951 ••••••••••••••••••••••
1958 ••••••••••••••••••••••
1959 ••••••••••••••••••••••
1960 ••••••••••••••••••••••
1961 ••••••••••••••••••••••
1962 ••••••••••••••••••••••
1963 ••••••••••••••••••••••
1964 ••••••••••••••••••••••

13,085
15,249
11,949
5,375
5,070
5,229
5,148
4,492
3,891
)4,071
4,639
4,717
4,896
4,675
4,395
4,253
3,980
3,964
3,979
3,830
h,241
3,395

Unclassified •••••••••••••••••••

38n

393

Total Series E •.••••••••••••••• 13h,li70
Series H (1952 - Jan. 1957)
3,670
H (Feb. 1957 - 1964) ••••••
0,50~
Total Series H••••.•••••••••••• 10,175

?I~, 131

1945 ••••••••••••••••••••••

1946 ••••.•••••••••••••••••
1941 •••.••••••••••••••••••
1948 ••••••••••••••••••••••
1949 •••••••••.••••••••••••
1950 ••••••••••••••••••••••
1951 ••••••••••••••••••••••
1952 ••••••••••••••••••••••
1953 ••••••••••••••••••••••

1954 ••••••••••••••••••••••

1955 ••••••••••••••••••••••

11 ...

.~2

.35

102

12,956

11. '?'j

1 7 .'<")5

9,912
4,250
3,1336

::1,-, ~ ~-', 3
'),1
••

..I.

~f'.
~)

3,853
3,711
3,165
2,734
2,816

.,r -,

3,073

.J3.~'()

.'1
,

.;'

•

I
'.f.

?(). ~.'~:;

2,970

37.(':/i

4(' (1'7,
39. (x:

2,934

2,820
2,584
2,363
2,163
2,031
1,855
1,674
1,530
7'?n

i!1.-,fl
!J~.,)I

1-6.',5

I.f.

'7(.
t )

53.3;:
56.2:;
(?,. s.'()

7c: .h?

JO.? L

1,619
930

2,051

2,549

7,62 7

Total Series E and H••••••.•••• 145,045

96,680

48,366

33.15'

3,322

1,953

1,368

41.13

Series J and K (1953 - 1957) •••••

) Total matured •••••••• 34,9 24
All SerieSj Total unmu.tured •••••• Ih8,367
Gr:md Total •••••••••• 183,291
Inc1u(ws accrued discount.
Current redemption value.
At option of owner bonds may be held and
will earn interest for additional periods
after original maturity dates.

34,765
98, l133
133,398

r' r''7L
.),.-' i \)

• '~5
33.,t52
27. ?::

BUREAU CF THE PUBLIC DEBT

FOIl '(f.LKA t. A.l-'. ~'_:..:'.P.\F\. >;::' ,
T!!!da;r. i"~ 1, 19611.

NcmMar )0,

The l'reasUl7 ,,epa.rtl~ent. ., I101.lni!ftd

196b

last, 8venine tt:.At t.M t.enden tor two Mrle. II

7ntuUI'J btll., Gne Benes t.o he an a(i.d1ti..:>nal issue or t.be bUl, "'\eel !1eP~ ),
196it. and the ot.her :wries '\.0 be d.ated . eo_her ), 19&., which went offend 011 lOY, • •
2S, .re apenscl at th~" :'.Cera! eser"e ;"enks on ~r 3',). fende" went 1M1\ed , .
$l,?f)Q,OOJ,;}''xJ, or t.hereabouta, of 91-d8¥ bl11& "nd f'n' a,I').JO,;) ~O,O()O, or thereabclM".
of 1e2-rl~ bUla. :1-&41 deta.lls "1' tb! two ~jr1Ull1 are .&8 follOWllI
9,At.fJE

')f.'

Ace ;~--;;:tl

;,1-da1

rea&ury billa
Htu~-t1~ ,,,~arcl'l 114 l''i6;i ...

C'Y.'C~T:'rtvt'; :;rrt;·St

mce
High

99.0)0

~:~.

~t:::

::--.1.,.

;;t"

Approx.
.\nnual "ate

).8j1C"

182-d.a;r rreanr,y biU.
. .~rl.g J-. 2. 1?§S

A.nmlal lla\e

Price

t
I

~:~~!I

.97) ~

•

~::!

•

iidy.

Appl"OX.

4.0.

t:=}/

~.xcapU.DI 2 t.enders tot&l1q ~,r.JJ,CX)OJ
"':ue?t.1nc 1 tender of $1,000,000
~he ua<Nnt of .}l-day b~ll. bid tor at t.he low prt_;. . _.pW
69 peJ"Mrlt, of t..be UO\U1t of 162-<1a.1 bUla bid for at U-:.e 1011 pri.ee wu uoeP'M

peroent of

ni,triet.

~.G
New 'fork
flhUadel:Xlia

Cle....land
R.101.~ruI

Atlanta
Chloqo

st..

UNi8

~ied

FGr

fi.~' ,6(j)
lt5l&6,981,)0f)
29 • 661, O(X)

21,409,000

,
12,547,(0) •
Slb,781,000 •
1.4,661,000·

Acoept.ed

16,455,000

27,409,000
16,4SS,ilOO

)0,088,000

28,088,000

194,81E,JuO
)I,hU, {)O()

s 1.Dneat-'lOlia
':.au C1t.y

18, bee. (XX)

Dallu

27,St~.OOO

26 t r1&5 , i.)()()

San l="'ranoisco

61, 009, !)Q()

IJTALS

<t2,1ll2.J49,exx>

AppUe4

'ar

•

lS,ll6,OOO

l,L.bJ,718,ooo

1,},482,000

)2,658,000

•r

14,957,~)O

141,618.0().) s
27,"16,000 I
11,688,000 s
26, <1.lS,ooo 1
20, 892, <X» a
$2,009,000 I

19),612,000
12,232,000
1,141, \)I.iJ

$1,200,009,000

ll,S98,oJO

6,16'1,(00
9,m,()JO

1S, 2lJ&, ()l:x)
$1,8)5,29S,CXlO

Aecef!!L-

•

1,&ii,iii

110,11),_

S,481,. .

27,6S8,-

U,4S1,_

T,S_,OOI

11,)01,-

10,1)1,_
6,491,aao

S,Slo,_

4,nl,aoo

6l,W.,ClOO

~l,O'JO,02S,oao J

.!IIaelwlee $237,)41,000 nOlftOOlllP8'lt.1v. tenOIn ac_~t.e4 at the .....ra.ge prS.ee of " • •
YrDOludea :J67,)90,OOO nonoaape\1t.1"'t teDdera . . .pte. at t.he ....~ vri.. . of " • •
a coupon l.saue or t.he . . . lan~ end far \be . . . aaount. 1zrtwte4, the ...... .
the.. billa would. pronde ylelde of ).96"" torr \he 9"1..., bUla, aM 4.17-', t .. ....
182-clay b1l.ls. ~Dt.ere.t. rat.e. on '01111 are cpa~d 1n teru of baI* ~
the retum rti<,t.eci to tt.. face uount of Ute bm. prara'bl.e at. ."t,ur11;7 ra\ber .....

!10ft

vi.

t.he uount. iny •• toed and tj,eir length in actual mabel' of ...... ftlat.ed to a )60-_
.Jl CiX'ltrut, yields on certificate_, notee, aw.l b.Jftda are ooaputad 1a t . . of interest onwbe am·)1Jtlt inv.at.r-:td, and Nlata '~. n "libel' of dq. rea.1
111 . .
int.erHt. ~",... nt neriod t.J t.he 1A~t.ual %l~r of 4a,ya in t.he pel'1~, vita • ..s&rMeJ
C(ftpoundinc it PlOl'e than one COUp.Xl ~r1od 1a lnTolYed.

~e.r.

nine

TREASURY DEPARTMENT
)R RELEASE A.M. NEWSPAPERS,

lesday, December 1, 1964.
RESULTS OF TREASURY'S WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two ser'Lr:s 0:
:-easury bills, one series to be an additional issue of the bills dated September 3,
~64, and the other series to be dated December 3, 1964, which were offered on November
), were opened at the Federal Reserve Banks on November 30. Tenders were invited for
l,200,000,000, or thereabouts, of 91-day bills and for $1,000,000,000, or thereabouts,
r 182-day bills. The details of the two series are as follows:

' lNGE OF ACCEPTED
)MPETITIVE BIDS:

182-day Treasury bills
91-day Treasury bills
maturing June 3, 1965
maturing March 4, 1965
:
Apprcxa Equiv.
Approx. Equiv.
Annual Rate
Price
Annual Rate
Price
High
4.(1<,)9%
99.030
3.831%
97.973 'td
Low
4.0111%
97.957
99.016
3.893%
Average
99.022
3.868%
11.0.10% Y
97.962
a/ Excepting 2 tenders totaling $2,200,000; ~ Excepting 1 tender of $l,OOO,CoO
'9'3 percent of the amount of 91-day bills bid for at the low pric8W"as acceptEd
69 percent of the amount of 182-day bills bid for at the low p::-ice was accept.ed
JTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:

District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
I{inneapolis
Kansas City
Dallas
San Francisco

Applied For
$ 22,547,000
1,548,981,000
29,661,000
27,409,000
16,1155,000
30,088,000
1911,818,000
32,486,000
18,888,000
26,045,000
27,962,000
67,z 009 2 000

AcceEted
,
$ 12,541,cY<'
814,781,000
14,661,000
27,409,000
16,455,000
28,088,000
141,818,000
21,416,000
11,888,000
26,045,000
20,892,000
52 2 009 2 °00

TOTALS

$2,042,,349,000

$1,200,009,000

··
···
·
·
sI

ApElied For
$ 15,1116,000
1,h43,718,000
10,482,000
32,658,000
14,957,000
11,598,000
193,812,000
12,232,000
7 ,1)~7 ,000
8,760,000
9,271,000
75,2L.4,000
$1,835,295,000

Accept.e :..
7.h16,ooo
$
77l)~113, 000
S:~B2,000

27,6::;8,000
12,h:J7 , 000
7,598,000
77,502,000
10:732,000
6:h92,OOO
8:510,000
:.t, 921, 000
61 , lh4, 000
$1,000,025,000

s!.Includes $237,3)t7,OOO noncompetitive tenders accepted at the average price of 99.022
~Includes $61,390,000 noncompetitive tenders accepted at the average price of 97.962
a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 3.96%, for the 9l-day bills, and 4.17%, for the
182-day bills. Interest rates on bills are quoted in terms of bank discount with
the return related to the face amount of the bills payable at maturity rather than
the amount invested and their length in actual number of days related to a 360-~
year. In contrast, yields on certificates, notes, and bonds are computed in terms
of interest on the amount invested, and relate the number of days remaining in an
interest payment period to the actual number of days in the period, with seniannual
compounding if more than one coupon period is involved.

yOn

l-lh23

UNITED STATES NET MONETARY GOLD TRANSACTIONS WITH
FOREIGN COUNTRIES AND INTERNATIONAL INSTITUTIONS
January 1, 1964 - September 30, 1964
(In millions of dollars at $35 per fine troy ounce)
Negative figures represent net sales by the
United States; positive figures, net purchases

Austria
Brazil
Chile
Colombia
Dominican Republic

First
Quarter
1964

Second
Quarter
1964

-32.1
-1.0

-23.2
+28.1

Third
Quarter
1964
-1.1
-1.0
+10.0

-2.5

-.1

Egypt
Finland
France
Germany
Israel

-.7
-5.0
-101.3
-200.0
-2.0

-8.4

-.8

-101.3

-101.3
-25.0

Italy
Philippines
Salvador
Spain
Surinam

+200.0
+9.9
-2.2

-.1

Switzerland
Syria
Tunisia
Turkey
United Kingdom
Yugoslavia
All other
Total

-2.0
+2.5

-2.7
-1.2
+109.3

-30.0
-.1

-.1

-.5
+15.0
+220.9

+162.5

-.7
-.2

-.6
-1.3

+95.0

+41.0

Figures may not add to totals because of roundingo

TREASURY DEPARTMENT

December 2, 1964
FOR IMMEDIATE RELEASE

UNITED STATES FOREJGN GOLD TRANSACTIONS FOR
THIRD QUARTER OF 1964

u.S.

net monetary gold transactions during the

third quarter of 1964 resulted in a net purchase of

$41.0 million.

In the first quarter of the year,

there was a net sale of gold of $27.5 million, and
in the second quarter, a net purchase of $95.0 million.
These transactions brought to $108.5 million the
net purchase of monetary gold in the first nine months
of this year.
The Treasury's quarterly report, made public
today, summarizes monetary gold transactions with
foreign governments, central banks and international
institutions for the first three quarters of Calendar
Year 1964.

D-1424
(OVER)

TREASURY [>EPARTMENT

= ----- -=-

::=

WASHINGTON. D.C.
Deccmlwr 2, J 9h4

FOR H1MED LATE RELEASE

UNITED STATES FOREIGN GOLD TRANSACTIONS FOR
THIRD QUARTER OF 1964
U.S. net monetary gold transactions during the
third quarter of 1964 resulted in a net purchase of

$41.0 million.

In the first quarter of the year,

there was a net sale of gold of $2705 million, and
in the second quarter, a net purchase of $95.0 millionG
These transactions brought to $108.5 million the
net purchase of monetary gold in the first nine months
of this year.
The Treasury's quarterly report, made public
today, summarizes monetary gold transactions with
foreign governments, central banks and international
institutions for the first three quarters of Calendar
Year 1964.

D-1424

(OVER)

Austria
Brazil
Chile
Colombia
Dominican Republic

First
Quarter
1964

Second
Quarter
1964

-32.1
-1.0

-23.2
+28.1

Third
Quarter
1964
-1.1
-1.0
+10.0

-2.5

-.1

Egypt
Finland
France
Germany
Israel

-.7
-5.0
-101.3
-200.0
-2.0

-8.4

-.8

-101.3

-101.3
-25.0

Italy
Philippines
Salvador
Spain
Surinam

+200.0
+9.9
-2.2

-.1

Switzerland
Syria
Tunisia
Turkey
United Kingdom
Yugoslavia
All other
Total

--.1

-2.0
+2.5

-2.7

-30.0
-.1

-.1

-1.2
+109.3

-.5
+15.0
+220.9

+162.5

-.6
-.4

-.7
-.2

-.6
-1.3

-27.5

+95.0

+41.0

Figures may not add to totals because of roundingo

- 3 -

and exchange tenders will receive equal. treatment.

cash adjustments will be made

for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale
or other disposition of the bills, does not have any exemption, as such, and loss
fram the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code of 1954.

The bills are subject

to estate, inheritance, gift or other excise taxes, whether Federal or state, but
are exempt from all taxation now or hereafter imposed on the principal or interest
thereof by any state, or any of the possessions of the United states, or by any
local taxing authority.

For purposes of ta.xa.tion the amount of discount at which

Treasury bills are originally sold by the United states is considered to be interest.

Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954

the amount of discount at which bills issued hereunder are sold is not considered
to accrue until such bills'are sold, redeemed or otherwise disposed of, and such
bills are excluded from consideration as capital assets.

Accordingly, the owner

of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such
bills,' whether on original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity during the taxable year tor
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and govern the conditions of their.issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 -

decimals, e. g., 99.925.

Fra.ct:f.ons may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will

be supplied by Federal Reserve Banks or Branches on application therefor.
Bankvag institutions generally may submit tenders for account of customers
provided the names of the customers are set forth in such tenders.

others than

banking institutions will not be permitted to submit tenders except for their
own account.

Tenders will be received without deposit from incorporated banks

and trust companies and from responsible and recognized dealers in investment
securities.

Tenders from others must be accompanied by payment of 2 percent ot

the face amount of Treasury bills applied for, unless the tenders are accompanied
by an express gu.a.ra.nty of payment by an incorporated bank· or trust company.
Dmnedi8,tely after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the Treasury Department ot the amount and price range of accepted bids.

Those

submitting tenders will be advised of the acceptance or rejection thereot.

The

Secretary of the Treasury expressly reserves the right to accept or reject any
or all tenders, in whole or in part, and his action in any such respect shall be
final.

Subject to these reservations, noncompetitive tenders for $ 200,000 or

less for the additional bills dated September 10, 1964
ing until maturity date on March 11, 1965

}(}QiC){
$100,000 or less for the

5(5eO!){

, (

5O(XIlBQ

91 days remain)(}QXbO
~
) and noncompetitive tenders for

182 -day bills without stated price from anyone

5(mt)C

bidder will be accepted in f'ul1 at the average price (in three decimals) ot accepted competitive bids tor the respective issues.

Settlement for accepted ten-

ders in accordance with the bids must be made or completed at the Federal Reserve
Banks on December 10, 1964

5()OOQ

, in cash or other immediately available :f'unds or

in a like face amount of Treasury bills maturing -..;De~c.::::em=b=.e;:;;_1~0~...:1!.:i9~6~4'--_.
_

Casb

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,

December 2, 1964
TREASURY'S WEEKLY BILL OFFERING

The Treasury Department, by thi s public not ice, invites tenders for two series
of Treasury bills to the aggregate amount of $ 2,300,000,000 , or thereabouts, for

ddX

December 10, 1964 , in the amount

cash and in exchange for Treasury bills mat\lring

xw:x

of $ 2,302tij7,000, as follows:

91 -day bills (to maturity date) to be issued Decemb.l964

xttiJ

in the amount of $ 1,300,000,000 , or thereabouts, represent-

xmx

ing an additional amount of bills dated
and to mature March

~965

amount of $ 900.000

September 10, 1964 ,

X4IJX

, originally issued in the

,the additional and original bills

to be freely interchangeable.
182

-day bills, for $

xpiJX

1,0~,000,

DecembQx1964

or thereabouts, to be dated

, and to mature

June 1 _

The bills of both series will be issued on a discount basis under competitive
and noncompetitive bidding as hereinafter provided, and at maturity their face
amount. will be payable without interest.

They will be issued in bearer form only,

and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and
$1,000,000 (maturity value).
!enders will be received at Federal Reserve Banks and Branches up to the
clOSing hour, on~-thirty p.m., Eastern Standard time,

Monday, December 7, 1964

¥Sf
Ea.ch

Tenders will not be received at the Treasury Department, Washington.

tender

must be for an even multiple of $1,000, and in the case of competitive tenders the

price offered must be expressed on the basis of 100, with not more than three

(\.

/~j;J L;

TREASURY DEPARTMENT

December 2, 1964
EOR IMMEDIATE RELEASE
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$2,300,000,000,or thereabouts, for cash and in exchange for
Treasury bills maturing December 10, 1964, in the amount of
$2,302,387,000, as follows:
91-day bills (to maturity date) to be issued December 10, 1964,
in the amount of $1,300,000,000, or thereabouts, representing an
additional amount of bills dated September 10, 1964,and to
mature March 11, 1965,
originally issued in the amount of
$900,822,000,
the additional and original bills to be freely
interchangeable.
182 -day bills, for $ 1,000,000,000, or thereabouts, to be dated
December 10, 1964, and to mature June 10, 1965.
The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided, and at
maturity their face amount will be payable without interest. They
will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty p.m., Eastern Standard
time, Monday, December 7, 1964.
Tenders will not be
received at the Treasury De~artment, Washington. Each tender must
be for an even multiple of $1,000, and in the case of competitive
tenders the price offered must be expressed on the basis of 100,
with not more than three decimals, e. g., 99.925. Fractions may not
be used. It is urged that tenders be made on the printed forms and
forwarded in the special envelopes which will be supplied by Federal
Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of
customers provided the names of the customers are set forth in such
tenders. Others than banking institutions will not be permitted to
submit tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanled by an express guaranty of payment by an incorporated bank
or trust company.
D-1425

- 2 -

Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Department of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,0000r less for the additional bills dated
September 10, 196~ 91 days remaining until maturit¥ date on
March 11, 1965)
and noncompetitive tenders for, 100,000
or les8 for the 18~day bills without stated price from anyone
bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids for the respective issues.
Settlement for accepted tenders in accordance with the bids must be
made or completed at the Federal Reserve Banks onDecember 10, 1964
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing December 10, 1964.Cash and
exchange tenders will receive equal treatment. Cash adjustments
will be made for differences between the par value of maturing
bills accepted in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the billS, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject to
estate, inheritance, gift or other excise taxes, whether Federal or
State, but are exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to be
interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills are
sold, redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
~reasury Department Circular No. 418 (current revision) and this
notice prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained from
any Federal Reserve Bank or Branch.

000

- 2 -

The Secretary told Dr. Engstrom: "You and the other members
of this important committee have made 1964 another very successful
year for Savings Bonds. I am sure that, under your leadership,
1965 will be equally outstanding."
Dr. Engstrom had been a member of the Committee for 1964,
serving as Chairman for the Electronics Industry. He had also
served as Regional Vice-Chairman, Mid-Atlantic area, Electronics
Industry drive, during the 1963 campaign, when Mr. Geneen was
Chairman for both Electronics and for the full industrial
connnittee.
Dr. Engstrom was elected RCA President on December 1, 1961,
after six years as Senior Executive Vice-President. He is the
sixth man to hold the Presidency since RCA was organized in
1919. Dr. Engstrom is also a member of the Board of Directors
of RCA and of its subsidiaries, the National Broadcasting
Company, Inc., and RCA Communications, Inc.
000

TREASURY DEPARTMENT

December 7, 1964
FOR RELEASE A.M. NEWSPAPERS
MONDAY, DECEMBER 7, 1964
DR. ENGSTROM OF RCA NAMED BY SECRETARY DILLON
AS 1965 CHAIRMAN FOR PAYROLL SAVINGS CAMPAIGN
Dr. Elmer W. Engstrom, President, Radio Corp. of America,
was named over the weekend as Chairman of the U. S. Industrial
Payroll Savings Committee for 1965 by Treasury Secretary
Douglas Dillon.
The committee was organized by Secretary Dillon in late
1962 to stimulate industrial employee thrift through purchases
of U. S. Savings Bonds under the Payroll Savings Plan.
Members of the committee for the new campaign year are
outstanding industrial leaders from 27 key market areas who
will head up Payroll Savings programs in their respective
metropolitan communities.
Frank R. Milliken, President, Kennecott Copper Corp.,
immediate past Chairman, and Harold S. Geneen, President,
International Telephone and Telegraph Corp., Chairman of the
1963 committee, will remain active as members-at-large.
In announcing Dr. Engstrom's appointment, Secretary Dillon
said, "There are few more direct ways by which the chairman and
members of this committee can help to bolster the nation's
financial position than by encouraging the ownership of Savings
Bonds by industrial employees, employees both of their own and
other companies.
"For millions of Americans, the Payroll Savings Plan is
a convenient method for investing in bonds on the installment
plan. For many of our citizens, it is the difference between
systematic saving or none at all."
(OVER)

TREASURY DEPARTMENT

December 7, 1964
FOR RELEASE A.M. NEWSPAPERS
MONDAY, DECEMBER 7, 1964
DR. ENGSTROM OF RCA NAMED BY SECRETARY DILLON
AS 1965 CHAIRMAN FOR PAYROLL SAVINGS CAMPAIGN
Dr. Elmer W. Engstrom, President, Radio Corp. of America,
was named over the weekend as Chairman of the U. S. Industrial
Payroll Savings Committee for 1965 by Treasury Secretary
Douglas Dillon.
The committee was organized by Secretary Dillon in late
1962 to stimulate industrial employee thrift through purchases
of U. S. Savings Bonds under the Payroll Savings Plan.
Members of the committee for the new campaign year are
outstanding industrial leaders from 27 key market areas who
will head up Payroll Savings programs in their respective
metropolitan communities.
Frank R. Milliken, President, Kennecott Copper Corp.,
immediate past Chairman, and Harold S. Geneen, President,
International Telephone and Telegraph Corp., Chairman of the
1963 committee, will remain active as members-at-1arge.
In announcing Dr. Engstrom's appointment, Secretary Dillon
said, "There are few more direct ways by which the chairman and
members of this committee can help to bolster the nation's
financial position than by encouraging the ownership of Savings
Bonds by industrial employees, employees both of their own and
other companies.
"For millions of Americans, the Payroll Savings Plan is
a convenient method for investing in bonds on the installment
plan. For many of our citizens, it is the difference between
.sav1ng
,
systemat1c
or none a t a 11"
.
(OVER)

- 2 -

The Secretary told Dr. Engstrom: "You and the other members
of this important committee have made 1964 another very successful
year for Savings Bonds. I am sure that, under your leadership,
1965 will be equally outstanding."
Dr. Engstrom had been a member of the Committee for 1964,
serving as Chairman for the Electronics Industry. He had also
served as Regional Vice-Chairman, Mid-Atlantic area, Electronics
Industry drive, during the 1963 campaign, when Mr. Geneen was
Chairman for both Electronics and for the full industrial
committee.
Dr. Engstrom was elected RCA President on December 1, 1961,
after six years as Senior Executive Vice-President. He is the
sixth man to hold the Presidency since RCA was organized in
1919. Dr. Engstrom is also a member of the Board of Directors
of RCA and of its subsidiaries, the National Broadcasting
Company, Inc., and RCA Communications, Inc.
000

- 12 below fair value is made, will not be regarded as affecting
purchase price or exporter'. sales price. (Secs. 201, 202,
203, 204, 208, 407, 42 Stat. 11, as amended, 12, 13, 14, 18,
sec. 486, 46 Stat. 725, as amended; 19 U.S.C. 160, 161, 162,

163, 167, 173, 1486.)

Assistant

NOV 251964

Secrel ~
of

- 11 ..
Section 14.9 is amended as follows:
Paragraph (a) is amended to read:
(a) Upon receipt of advice from the Commissioner of Custans
pursuant to section 14.6(e), if the Commissioner's '~ith
holding of Appraisement Notice" shall specify that the proper
basis of comparison for fair value purposes is exporter's
sales price or if that notice does not specify the appropriate basis of comparison for fair value purposes, each
appraiser shall Withhold appraisement as to such merchandise
entered, or withdrawn fran warehouse, for consumption, on any
date after the l20th day before the question of dumping was
raised by or presented to the Secretary of the Treasury or
his delegate. If the Canmissioner' s "Wi tbholding of Appraisement Notice," including any supplementary notice, shall
specify that the proper basis of canparison for fair value
purposes is purchase price, the appraiser shall Withhold
appraisement as to such merchandise entered, or withdrawn
fran warehouse, for consumption, after the date of publication
of the ''Withholding of Appraisement Notice. II Each appraiser
shall notify the collector and importer immediately of each
lot of merchandise with respect to which appraisement is so
Withheld. Upon advice of a finding made in accordance with
section l4.8(b), the appraiser shall give immediate notice
thereof to the collector and the importer when any shipment
subject thereto is imported after the date of the finding
and information is not on hand for completion of appraisement
of such Shipment. Customs Form 6459 shall be used to notify
the collector and importer whenever appraisement is withheld
under this paragraph.
Paragraph (f) is amended to read;
(f) In calculating purchase price or exporter's sales price,
as the case may be, there shall be deducted the amount of
any special dumping duties 'Which are, or will be, paid by
the manufacturer, producer, seller, or exporter, or which
are, or will be I refunded to the importer by the manufacturer ..
producer, seller, or exporter , either directly or indire ctly..
but a warranty of nonapplicability of dumping duties granted
to an importer with respect to merchandise which is (1) pur_
chased, or agreed to be purchased, before publication of a
''Withholding of Appraisement Notice " With respect to such
merchandise aDd (2) exported before a determination ot sales

- 10 -

being, or is likely to be, sold in the United states or elsewhere at less than its fair value. As soon as possible the
Secretary will publish in the Federal Register a "Notice of
Tentative Determination," which will include a statement of
the reasons on which the tentative determination is based.
Interested persons will be given an opportunity to make such
written submissions as they desire, within a period which will
be specified in the notice, with respect to the contemplated
action. Appropriate consideration will be given to any new or
additional information or argument submitted. If any person
believes that any information obtained by the Bureau of CUstoms
in the course of an antidumping proceeding is inaccurate or
that for any other reason the tentative determination is in
error, he may request in writing that the Secretary of the
Treasury afford him an opportunity to present his views in .
this regard. Upon receipt of such a request the Secretary will
notify the person who supplied any information, the accuracy of
which is questioned and such other person or persons, if any, as
he in his discretion may deem to be appropriate. If the Secretary is satisfied that the circumstances so warrant, an opportunity will be afforded by the Secretary or his delegate for all
such persons to appear, through their counselor in person, accompanied by counsel if they so desire, to make known their respective points of view and to supply such further information
or argument as may be of assistance in leading to a conclusion
as to the accuracy of the information in question. The Secretary or his delegate may at any time, upon appropriate notice,
invite any such person or persons as he in his discretion may
deem to be appropriate to supply him orally with information or
argument. As soon as possible thereafter, the Secretary will
make a final determination, except that the Secretary may defer
making an affirmative determination of sales below fair value
during the pendency of any other antidumping proceeding which
relates to the same class or kind of merchandise imported from
another foreign country. The Secretary will defer making an
affirmative determination only if he is satisfied that deferral
is appropriate under all of the circumstances. Circumstances
which the Secretary will take into consideration will include
the dates on which information relating to the various antidumping proceedings came to his attention, the volume of sales
involved in each proceeding, elements of hardship, if any,
and probable extent of delay which deferral would entail. No
determination that sales are not below fair value will be
deferred because of this provision. Whenever the Secretary
makes a determination of sales at less than fair value he will
so advise the United states Tariff COmmission.
(Secs.

201, 401, 42 Stat. 11, as amended, 18; 19 U.S.C. 160, 113.)

- 9 -

..."1 a_.
applicable, unless the 5 percent discount can be justified
by cost savings. Cost savings can also be used to justify
a quantity discount where there were no sales in the hane
market in quanti ties sufficient to warrant the granting ot
the 5 percent discount, and no offers because there is no
potential market for such quantities.
In determining whether a discount has been given, the
presence or absence of a published price list reflecting
such a discount is not controlling. In certain lines of
trade, price lists are not commonly published and in others
although camnonly published they are not camnonly adhered to.
The following example also relates to quantity allowances.
Example 5. A foreign producer has the following record
of sales at or about the date of sale or exportation to the
Uni ted States:
Price per lb.
for Sal~s in
Uni ts of 100 lbs.
and 1,000 lbs.

Sales for
Consumption
in Country of
Exportation

Sales to
the
Uni ted States

$.85 ( 1001bs.)
$.80 (1,000 lbs.)

200,000 lbs.
20,000 lbs.

100 ,000 lbs.

-0-

Although the lower price in the hane market appears to
obtain for quantities the same as those sold for exportation
to the United States at the same price, the quantity sold
for home consumption at the lower price is less than 20 percent
of the quantity sold in the home market. Accordingly, the
price for exportation to the United States is not justified,
unless cost savings can be shown to justify the lower price.
If 44,000 pounds had been sold in the home market at the $.80
price, the lower price would have been justified for comparison With the price for exportation to the United States.
Section 14.8(a) is amended to read:
(a) Upon receipt from the Commissioner of Customs of the information referred to in section l4.6(d), the Secretary of
the Treasury Will proceed as promptly as possible to determine tentatively whether or not the merchandise in question is in tact

2'
I

'-'

- 8 -

( 4) Offering price. In the determination of fair value, offers
will be considered in the absence of sales, but an offer made in
circumstances in which acceptance is not reasonably to be expected will not be deemed to be an offer.
A new subparagraph (9) is added reading as follows:
(9) Revision of prices or other changed circumstances. Whenever the Secretary of the Treasury is satisfied that promptly
after the commencement of an antidumping investigation either
(i) price revisions have been made which eliminate the likelihood of sales below fair value and that there is no likelihood
of resumption of the prices which prevailed before such reviSion, or (ii) sales to the United States of the merchandise
have terminated and will not be resumed; or whenever the secretary concludes that there are other changed circumstances on
the basis of which it may no longer be appropriate to continue
an antidumping investigation, the Secretary shall publish a
notice to this effect in the Federal Register. ihe notice shall
state the facts relied on by the Secretary in publishing the
notice and that those facts are considered to be evidence that
there are not and are not likely to be sales below fair value.
The notice shall also state that unless persuasive evidence or
argument to the contrary is presented within 30 days the Secretary will determine that there are not and are not likely to be
sales below fair value. (Sec. 401, 42 Stat. 18; 19 U.S.C. 113.)
Part 14 is amended further by amending examples 4 and 5 under

"Examples for PUrposes of Illustration" in footnote 15 to read:
Example 4. A foreign producer makes all of his sales,
other than those to the United States, for consumption in the
country of exportation. The majority of the merchandise thus
sold by him is sold in 50-ton lots at list prices, net. However,
a discount of 5 percent is granted on sales of more than 500 tons
and is freely available to those who purchase in the ordinary
course of trade. During the six months preceding the date when
the question of dumping was raised, the producer made sales of
more than 500 tons each With respect to 15 percent of such or
similar merchandise which he sold in the home market. Sales
for exportation to the United States are at list prices less
5 percent and have been in quantities of aver 500 tons. The
5 percent will not be allowed as a quantity discount because
less than 20 percent of such or similar merchandise was sold
in the haDe market in quanti ties to which such discount was

- 7Subparagraph (1) is amended to read:

(1 ) Quantities. In canparing the purchase price or exporter's
sales price, as the case may be, with such applicable criteria
as sales or otfers, on which a determination of fair value is
to be based, reasonable allowances nll be made for differences
in quantities if it is established to the satisfaction of the
Secretary that the amount of any price differential is wholly
or partly due to such differences. In determining the question
of allowances for differences in quantity, consideration will
be given, among other things, to the practice of the industry
in the country of exportation nth respect to affording in the
hane market (or third country markets, where sales to third
countries are the basis for comparison) discounts for quantity
sales which are freely available to those who purchase in the
ordinary course of trade. Allowances for price discounts based
on sales in large quantities ordinarily nil not be made unless
(i) the exporter during the six months prior to the date when
the question of dumping was raised or presented had been granting quantity discounts of at least the same magnitude with respect
to 20 percent or more of such or similar merchandise which he
sold in the hane market (or in third country markets when sales
to third countries are the basis for canparison) and that such
discounts had been freely available to all purchasers, or (ii)
the exporter can demonstrate that the discounts are warranted on
the basis of savings specifically attributable to the quantities
involved.
Subparagraph (3) is amended to read:
(3) Similar merchandise. In canparing the purchase price or
exporter's sales price, as the case may be , with the selling
price in the hane market, or for exportation to countries
other than the United States, in the case of Similar merchandise described in subdivisions (C), (D), (E), or (F) of section
212(3), Antidumping Act, 1921, as amended (19 U.S.C. l70a.(3»,
due allowance shall be made for differences in the merchandise.
In this regard the Secretary will be guided primarily by the
effect of such differences upon the market value of the merchandise but, when appropriate, he may also consider differences in
cost of manufacture if it is established to his satisfaction
that the amount of any price differential is wholly or partly
due to such differences.
Subparagraph (4) is amended to read:

- 6 (c) Standards for determinin whether information will be
regarded as confidential.
1 Information will ordinarily be
considered to be confidential only if its disclosure would be
of significant competitive advantage to a competitor or would
have a significantly adverse effect upon a person supplying
the information or upon a person from wham he acquired the information. Further, if disclosure of information in specific
terms or with identifying details would be inappropriate under
this standard, the information will ordinarily be considered
appropriate fOr disclosure in seneralized, summary or approximated form, without identifying details, unless the Canm1ssioner
of Custams or the Secretary of the Treasury or the delegate of
ei ther determines that even in such generalized, summary or
approximated form, such disclosure would still be of significant
competitive advantage to a competitor or would still have a significantly adverse effect upon a person supplying the information
or upon a person fram whom he acquired the information. As indicated in (b), however, the deciSion that information is not
entitled to protection fram disclosure in its original or in
another form will not lead to its disclosure unless the persoll.
supplying it consents to such disclosure.

(2) Information will ordinarily be regarded as appropriate for
disclosure if it
(i) relates to price informatioD;
(ii) relates to claimed freely available price allowances
for quantity purchases; or
(iii) relates to claimed dif'f'erences in circumstances of
sale.

(3) Information will ordinarUy be regarded as confidential.
if its disclosure would
(i) disclose business or trade secrets;
(ii) disclose production costs;
(iii) disclose distribution costs, except to the extent
that such costs are accepted as justifying allowances
for quantit,y or differences in circumstances of sale;
(iv) disclose the DameS of partiCular custCmers or the
price or prices at which particular sal.es were made.
(Sec.

407, 42 stat. 18; 19 U.S.C. 173.)

Section 14. 7(b) is amended as follows:

- 5Part 14 is amended further by adding a new section designated
14.6a reading as tollows:
14.6a Disclosure ot information in antidumping proceedings.-(a) Information generally available. In general, all information, but not necessarily all documents, obtaiIled by the
TreasUry Department, including the Bureau of CUStoms, in connection with any antidumping proceeding will be available for
inspection or copying by any interested person, such as the
producer ot the merchandise, any importer, exporter, or danestic producer ot merchandise similar to that which is the subJect ot the proceeding.. With respect to documents prepared
by an otticer or employee ot the United States, tactual material,
as distinguished trom recommendations and evaluations, contained in any such document will be made available by summar,y
or otherwise on the same basis as information contained in
other documents. Attention is directed to section 24.12 relating to tees charged tor providing copies ot documents.
(b) Requests for confidential treatment of information. Any
person who submits information in connection with an antidumping proceeding may request that such information, or a~
specified part thereof, be held confidential. Information
covered by such a request shall be set torth on separate
pages from other information; and all such pages shall be
clearly marked "Confidential Treatment Requested." The Canmissioner ot Custans or the Secretary of the Treasury or the
delegate of either will determine, pursuant to paragraph (c)
of this section, whether such information, or any part thereot,
shall be treated as confidential. If it is so determined, the
information covered by the determination will not be made
available for inspection or copying by any person other than
an officer or employee of the United States Government or a
person who has been specifically authorized to receive it by
the person requesting confidential treatment. If it is determined that information submitted with such a request, or any
part thereof, shoilld not be treated as confidential, or that
summarized or approximated presentations thereof should be
made available for disclosure, the person who has requested
confidential treatment thereot shall be promptly so advised
and, unless he thereafter agrees that the information, or
any specified part or summary or approximated presentations
the re ot , may be disclosed to all interested parties, the
information will not be made available tor disclosure, but
to the extent that it is self-serving it will be disregarded
tor the purpose ot the determination as to sales below tair
value and DO reliance sball be placed thereon in this connection.

- 4presented the question of dumping, his name shall be included
in the notice unless a determination under section l4.6a of
these regulations requires that his name not be disclosed.
(ii) The Commissioner shall thereupon proceed promptly to
decide whether or not reasonable grounds exist to believe or
suspect that the merchandise is being, or likely to be, sold
at less than its foreign market value (or, in the absence of
such value, than its constructed value). To assist him in
making this decision the Commissioner, in his discretion,
may conduct a brief preliminary investigation into such mattera,
in addition to the invoice or other papers or information presented to him, as he may deem necessary.
Paragraph (e) is amended to read:
(e) If the Commissioner determines pursuant to paragraph
(d){l)(ii) of this section, or in the course of an investigation under paragraph (d)(3)(i) of this section, that there
are reasonable grounds to believe or suspect that any merchandise is being, or is likely to be, sold at less than its
foreign market value (or, in the absence of such value, than
its constructed value) under the Antidumping Act, he shall
publish notice of that fact in the Federal Register, furn:!shing an adequate description of the merchandise, the name of
each country of exportation, and the date of the receipt of
the information in proper form, and shall advise all appraisers
of his action. This notice may be referred to as the "Withholding of Appraisement Notice." If the belief or suspicion
relates only to certain shippers or producers, the notice shall
speci~ that this is the case and that the investigation is
limited to the transactions of such shippers or producers.
The notice shall also speci~ whether the appropriate basis
of comparison for fair value purposes is purchase price or
exporter's sales price if sufficient information is availahle to 60 state; otherwi_se a supplementary notice will be
published in the Federal Register as soon as possible which
will specify 1-1hich of such prices is the appropriate basis
of comparison for fair value purposes. Upon receipt of such
adVice, the appraisers sb.a.ll proceed to withhold appraisement
in accordance with the pertinent provisions of section 14.9.
(Secs. 201, 407, 42 stat. 11, as amended, 18; 19 U.S.C. 160,
173.)
Part 14 is amended by deleting present footnote 14; by redesignating present footnote 14& as footnote 14.

- 3 amended, including information as to any differences between the
foreign market value or constructed value and the purchase price
or exporter's sales price which may be accounted for by any ditference in taxes, discounts, incidental costs such as those tor
packing or freight, or other items.

(3) Such information as is reasonably available to the person
furnishing the information as to the total value and volume c4
domestic production of the merchandise in question.
(4) Such suggestions as the person furnishing the information
may have as to specific avenues of investigation to be pursued
or questions to be asked in seeking pertinent iDtormation.
Paragraph (c) is amended to read:
(c) If any information filed pursuant to paragraph (b) does
not conform with the requirements of that paragraph, the
Camnissiotler shall return the camouDication to the person
who submitted it with detailed written advice as to the respects in which it does not conform.
Paragraph (d}(l) is amended to read:
(d)(l) Upon receipt pursuant to paragraph (a) or (b) of this
section of information in proper form, (i) the Commissiotler
shall conduct a summary investigation. If he determines that
the information is patently in error or that the merchandise
is not being and is not likely to be imported in more than
insignificant quantities he shall so advise the person who
submitted the information and the case shall be closed. OtherWise, the Camnissioner shall publish a notice in the Federal
Register that information in proper form has been received
pursuant to paragraph (a) or (b) of this section. This notice,
which may be referred to as the "Antidumping Proceeding Notice,"
Will specify whether the information relates to all shipments
of the merchandise in question from an exporting country, or
only to shipments by certain persons or film S; in the latter
case l only the names of such persons and firms Will be specified. The notice shall also specify the;,date on which information in proper form was received and that date shall be the
date on which the question of dumping was raised or presented
for purposes of sections 201(b) and 202(a) of the Antidumping
Act .. 1921, as amended (19 U.S.C. 160(b) and 161(a». The
notice shall also contain a summary of the information received. It a person wtside the Custans Service raised or

- 2 Due consideration now having been given to all comments, Views,
and other data received, the amendments as set forth below are hereby

adopted.

']he amendments shall beCClDe eff'ective, but not retroactively,

30 days after the date of' their publication in the Federal Register.
However, section 14.6& and the amendments to sections l4.7(b)(1),
l4.7(b)(3), and l4.9(a) shall not be ef'f'ective With respect to antidumping proceedings in connection With which the question of dumping
was raised or presented for the purposes of sections 20l(b) and 202(a)
of' the Antidumping Act, 1921, as amended (19 U.S.C. l60(b) aDd l61(a»,

before the 30th day following the date of' publication of the amendments
in the Federal Register.
Section 14.6 is amended as follows:
Paragraph (b) is amended to read:
(b) Any person outside the Custans Service who has information that merchandise is being, or is likely to be, imported
into the United States under such circumstances as to bring
14
it within the purview of the Antidumping Act, 1921, as amended,
may communicate such information in writing to the CommiSSioner
of' Custans. Every such Communication shall contain or be accanpan1ed by the following:
(1) A detailed description or sample of' the merchandisej the
name of' the country fran which it is being, or is likely to be,
importedj the name of the exporter or exporters and producer or
producers, if knownj and the ports or probable ports of' importation into the United States. If' no sample is furnished, the
Bureau of' Custans may call upon the person who furnished the
information to turn1sh samples of' the imported and competitive
domestic articles, or either.
(2) SUch detailed data as are reasonably available with respect
to values and prices indicating that such merchandise is being,
or is likely to be, sold 111 the United States at less thaD its
fair value, Vithin the JDean:S ng at the Antidumping Act, 1921, as

cc
(T. D.

643.3 C

)

Procedures under the Antidumping Act, 1921, as amended -Custans Regulations amended
Sections 14.6, 14.7, 14.8, and 14.9 relating to procedures under the
Antidumping Act, &mended; new section 14.6& relating to disclosure
of information in antidumping proceedings, added
TREASURY DEPAR'lMENT,
OFFICE OF THE COMMISSIONER OF CUST<M3
Washington, D. C.
To Collectors of Custans and Others Concerned:

TITLE 19--CUSTOMS DUTIES
CHAPmR I--BUREAU OF CUSTCl4S

PART 14--APPRAISEMENT
A notice was published in the Federal Register on December 24,

1963 (28 F.R. 14245), stating that the Treasury Department was reviewing its regulations (19 CFR 14.6-14.13) under the Antidumping Act of

1921, as amended (19 U.S.C. 160-173). All interested parties were
afforded an opportunity to be heard on January 23, 1964, With regard
to the regulations.
After consideration at all written submissions received and
oral arguments made at the hearing, a notice 'of proposed rulemaking
setting forth certain proposed amendments relating to procedures
under the Antidumping Act was published in the Federal. Register on
APril 23, 1964 (29 F.R. 5474), pursuant to section 4 of the Administrative Procedure Act (5 U.S.C. 10(3) and caumenta were invited to
be subD1tted.

- 13 freely available to those who purchase in the ordinary course
of trade. During the six months preceding the date when the
question of dumping was raised, the producer made sales of
more than 500 tons each with respect to 15 percent of such
or similar merchandise which he sold in the home market. Sales
for exportation to the United States are at list prices less
5 percent and have been in quantities of over 500 tons. The
5 percent will not be allowed as a quantity discount because
less than 20 percent of such or similar merchandise was sold
in the home market in quantities to which such discount was
applicable, unless the 5 percent discount can be justified by
cost savings. Cost savings can also be used to justify a
quantity discount where there were no sales in the home market
in quantities sufficient to warrant the granting of the 5 percent
discount, and no offers because there is no potential market
for such quantities.
In determining whether a discount has been given the presence
or absence of a published price list reflecting such a discount
is not controlling. In certain lines of trade price lists are
not commonly published and in others although commonly published
they are not commonly adhered to.
The following example also relates to quantity allowances.
Example 5
A foreign producer has the following record of sales at or
about the date of sale or exportation to the United States.
Price per lb.
for Sales in
Units of 100 lbs.
and 1,000 lbs.
$.85 ( 1001bs.)
$.80 (1,000 lbs.)

Sales for
Consumption
in Country of
Exportation
200,000 lbs.
20,000 lbs.

Sales
to the
United States
-0-

100,000 lbs.

Although the lower price in the home market appears to obtain for
quantities the same as those sold for exportation to the United
States at the same price, the quantity sold for home consumption at
the lower price is less than 20 percent of the quantity sold in the
home market. Accordingly, the price for exportation to the United
States is not justified, unless cost savings can be shown to justify
the lower price. If 44,000 pounds had been sold in the home
market at the $.80 price, the lower price would have been justified
for comparison with the price for exportation to the United States.

- 12 (17) The proposed effective date provisions are substantially
unchanged except for a thirty-day delay provision to allow the
public to become acquainted with them. As proposed, they had
read as follows:
"It is contemplated that if the proposed amendments are adopted
they will become effective, but not retroactively, on the date
of their adoption. Section 14.6a and the amendments of sections
14.7(b)(1), 14.7(b)(3), and 14.9(a) will not be effective with
respect to antidumping proceedings in connection with which the
question of dumping was raised or presented for the purposes
of section 201(b) and 202(a) of the Antidumping Act, 1921, as
amended (19 U.S.C. 160(b) and 161(a)) before the date of the
adoption of the amendments."
As issued, the effective date provisions read as follows:
"The amendments shall become effective, but not retroactively,
30 days after the date of their publication in the Federal
Register. However, section 14.6a and the amendments to
sections 14.7(b)(1), 14.7(b)(3), and 14.9(a) shall not be
effective with respect to antidumping proceedings in connection
with which the question of dumping was raised or presented
for the purposes of sections 201(b) and 202(a) of the Antidumping Act, 1921, as amended (19 U.S.C. 160(b) and 161(a)),
before the 30th day follOWing the date of publication of the
amendments in the Federal Register."
(18) Examples 4 and 5, set forth in footnote 15 appended to
section 14.7(a) are being revised to reflect changes brought about
by the new amendments. No change in the Examples was stated as
being contemplated in the Federal Register Notice of April 23
because it was deemed unnecessary to give notice in this regard.
The Examples do not themselves constitute changes in the Regulations.
They merely illustrate certain effects of the Regulations, and
require change as the Regulations change. Examples 4 and 5, as
they will be revised, will read as follows:
Example 4
A foreign producer makes all of his sales, other than those to
the United States, for consumption in the country of exportation.
The majority of the merchandise thus sold by him is sold in
50-ton lots at list prices, net. However, a discount of
5 percent is granted on sales of more than 500 tons, and is

" -..'

',-'

- 11 the proper basis of comparison for fair value purposes
is exporter's sales price or if that notice does
not specify the appropriate basis of comparison for
fair value purposes, each appraiser shall withhold
appraisement as to such merchandise entered, or withdrawn
from warehouse, for consumption, on any date after
the 120th day before the question of dumping was
raised by or presented to the Secretary of the Treasury
or his delegpte. If the Commissioner's 'Withholding
of Appraisement Notice," including any supplementary
notice, shall specify that the proper basis of comparison
for fair value purposes is purchase price, the appraiser
shall withhold appraisement as to such merchandise
entered or withdrawn from warehouse for consumption after
the date of publication of the "Withholding of Appraisement Notice." Each appraiser shall notify the collector
and importer immediately of each lot of merchandise
with respect to which appraisement is so withheld.
Upon advice of a finding made in accordance with
section 14.8(b), the appraiser shall give immediate
notice thereof to the collector and the importer when
any shipment subject thereto is imported after the
date of the finding and information is not on hand
for completion of appraisement of such shipment. Customs
Form 6459 shall be used to notify the collector and
importer whenever appraisement is withheld under this
paragraph.
(16) The proposed amendment of section 14.9(f) is being adopted
with changes, as follows:
Section 14.9(f) In calculating purchase price or exporter's
sales price, as the case may be, there shall be deducted
the amount of any special dumping duties which are, or
will be, paid by the manufacturer, producer, seller, or
exporter, or which are, or will be, refunded to the importer
by the manufacturer, producer, seller, or exporter, either
directly or indirectly, but a warranty of nonapplicability
of dumping duties granted to an importer with respect to
merchandise which is (1) purchased, or agreed to be
purchased, before publication of a "Withholding of Appraisement Notice" with respect to such merchandise and (2) exported before a determination of sales below fair value is
made will not be regarded as affecting purchase price or
exporter's sales price.

- 10 -

Secretary of the Treasury afford him an opportunity to present
his views in this regard. Upon receipt of such a request the
Secretary will notify the person who supplied ~ae ~ information, the accuracy of which is questioned and such other
Eerson or persons, if any, as he in his discretion may deem to
be appropriate. If the Secretary is satisfied that the
circumstances so warrant an opportunity will be afforded by the
Secretary or his delegate for e9~a all such persons to appear,
through their counselor in person, accompanied by counsel
if they so desire, to make known their respective points of
view and to supply such further information or argument as
may be of assistance in leading to a conclusion as to the
accuracy of the information in question. The Secretary or his
delegate may at any time, upon appropriate notice, pe~~e8~
~aa~-~Rf9Fffiat~9R-9F-aFg~9R~-ee-8~~~±~ea-9pa±±y-~9-a~m-ey -aBY
8~ea_~eFs9R_9F_~eF8eR8-as_ae_~R_a~s-a~seFe~~eR-may-aeem-te-ee
a~~Fe~p~a~e invite any such person or persons as he in his

discretion may deem to be appropriate to supply him orally with
information or argument. As soon as possible thereafter, the
Secretary will make a final determinationT--±~-ta9-aeteFffi~Rat~eR
~s-~f~Pma~~ve1-tae-geepetapY-w~±±-aav~se-tae-YR~~ea-gtate8-~aF~ff
,except that the Secretary may d~

G9mffi~88~eR-aeeepa~Rg±YT

making an affirmative determination of sales below fair
value during the pendency of any other antidumping proceeding
which relates to the same class or kind of merchandise imported
from another foreign country. The Secretary will defer making
an affirmative determination only if he is satisfied that
deferral is appropriate under all of the circumstances.
Circumstances which the Secretary will take into consideration
will include the dates on which information relating to the--various antidumping proceedings came to his attention, the
volume of sales involved in each proceeding, elements of
hardship, if any, and probable extent of delay which deferral
would entail. No determination that sales are not below fair
value will be deferred because of this provision. Whenever
the Secretary makes a determination of sales at less than
fair value he will so advise the United States Tariff Commission.
(15) The proposed amendment of section 14.9(a) is being adopted
without change, as follows~
Section 14.9

Action by the appraiser.

(a) Upon receipt of advice from the Commissioner of
Customs pursuant to section 14.6(e), if the Commissioner's
"Withholding of Appraisement Notice" shall specify that

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Seel'eta1'Y-may-~~elisB-a-Hetiee-ef-tais-faet-iH-tae-WeQeFal

Registel'-tegetaeF-wita-aH-iHvitatieH-te-all-iHteFestea-~aFties
te-ex~l'ess-taeiF-vi~s-taeFeeHT--lf-witBil'i-3g-aaYB-afte~-tBe
~~~lieatiel'i-ef-8~eB-l'ietiee-eemffiel'itB-8aall-ee-~eeeivea-il'iaieatiRg
taat-aRY-Begmel'it-ef-aH-il'ia~Bt~y-il'itel'eBtea-iR-tae-aRtia~~iRg
~Feeeeail'ig-eelieves-taat-it-i8-ae8il'a~le-tBat-tae-aeteFmiRatieR

~Feviaea-feF-iR-BeetieR-14Tgtaj-~e-maae;-tBe-QemffiiB8~eReF-ef
Q~BtemB-aRa-tae-SeeFetaFY-ef-tae-~Fea8aFY-8aall-~Feeeea-iH
aeeeFaaRee-wita-tae-~Fevi8ieRs-ef-taat-seetieRT---gtaepwiBe
tae-aRtia~~iRg-~FeeeeaiRg-may-~e-ele8ea-wita-a-aeteFm~HatieR

taat-tais-aetieR-aas-geeR-takeH-~~Fs~aRt-te-tae-~Feeea~Fes
aeFeiR-aeSeFi~eQT

(14) The proposed amendment of section 14.8(a) is being adopted with
changes, as follows:
(a) Upon receipt from the Commissioner of Customs of the information referred to in section 14.6(d), the Secretary of the Treasury
will proceed as promptly as possible to determine tentatively
whether or not the merchandise in question is in fact being, or
is likely to be, sold in the United States or elsewhere at less
than its fair value. As soon as possible the Secretary will
publish in the Federal Register a Netiee-ef-tBe-teRtative-aeteFmiRatieR1-waiea-may-~e-FefeFFea-te-as lINotice of Tentative Determination,"
will-ee-~~eli8Bea-iR-tBe-Feae~al-RegiBteF which will include a
statement of the reasons on which the tentative determination is
based. Interested persons will be given an opportunity to make such
written submissions as they desire, within a period which will be
specified in the notice, with respect to the contemplated action.
Appropriate consideration will be given to any s~ea new or additional
information or argument submitted.
If any person believes that any
information obtained by the Bureau of Customs in the course of
an antidumping proceeding is inaccurate or that for any other reason
the tentative determination is in error, he may request in writing that the

- 8 (12) The proposed amendment of section 14.7(b)(4) is being adopted
without change, as follows:
Section 14.7(b)(4) Offering price. In the determination of
fair value , offers will be considered in the absence of sales
but an offer made in circumstances in which acceptance is not
reasonably to be expected will not be deemed to be an offer.
(13) The proposed new paragraph (9) of section l4.7(b) is being adopted
with changes, as follows:
Section l4.7(b)(9) bikel~a99a-9f-sale8-at-le8s-taaB-~a~F-val~eT
Revision of prices or other changed circumstances.
{~j--gev~8~9B-9~-~F~ee8T Whenever the Secretary of the
Treasury is satisfied that aB-e~9FteF1 promptly after
leaFB~Bg the commencement of an antidumping investigation
w~ta-Fe8~eet-t9-R~8-8ai~meBt81-aa8-Fevi8ea-ai8-~Fiee8-89
a8-t9-elimiBate-tae-likelia99a-9f-ai8-8ale8-iB-tae-YB~tea
gtates-BeiBg-at-~Fiees-ee19w-ai8-eem~aFaBle-8ale8-iB-tae
a9me-maFket-t9F-iB-tRiFa-ee~tFY-maFket8;-wReB-8ale8-te

tRiFa-e9~tFies-aFe-tRe-Basis-f9F-e9m~aFi89Bj-9F-Ra8J-WitRe~t
iBteBti9B-t9-Fes~me-tRem1-teFmiBatea-ais-8ales-t9-tae-YBitea

gtates, either (1) price revisions have been made which
eliminate the likelihood of sales below fair value and that
the prices which
prevailed before such revisions, or
sales to the United
States of the merchandise have terminated and will not be
resumed; or whenever the Secretary concludes that there
are other changed circumstances on the basis of which it
may no longer be appropriate to continue an antidumpinginvestigation, the Secretary shall publish a notice to
this effect in the Federal Register. ~e-B9tiee-saall-als9
8tate-taat-tae-e~eFteF18-aet~eB-i8-e9B8iaeFea-te-Be-eviaeBee

tRat-Re-i8-Ret-selliRg-aaa-is-Ret-likely-te-sell-eelew-faiF
val~e-aRa-taat-tae-geeFetaFY-will-89-aeteFffiiBe-~les8
eviaeBee-9F-aFgHmeBt-t9-tae-e9BtFaFy-i8-~FeseRtea-witRiB

taiFty-aaYST The notice shall state the facts relied on
by the Secretary in publishing the notice and that those
facts are considered to be evidence that there are not and
are not likely to be sales below fair value. The notice
shall also state that unless persuasive evidence or argument
to the contrary is presented within 30 days the Secretary
will determine that there are not and are not likely to be
sales below fair value.

- 7 (10) The proposed amendment of section 14.7(b)(1) is being adopted
with a change as follows:
Section 14.7(b)(I) Quantities.--In comparing the purchase price
or exporter's sales price, as the case may be, with such
applicable criteria as sales or offers, on which a determination
of fair value is to be based, reasonable allowances will be made
for differences in quantities if it is established to the
satisfaction of the Secretary that the amount of any price
differential is wholly or partly due to such differences. In
determining the question of allowances for differences in
quantity, consideration will be given, among other things, to
the practice of the industry in the country of exportation with
respect to affording in the home market (or third country
markets, where sales to third countries are the basis for comparison) discounts for quantity sales which are freely available
to those who purchase in the ordinary course of trade. Allowances for price discounts based on sales in large quantities
ordinarily will not be made unless (i) the exporter during the
ysaF six months prior to the date when the question of dumping
was raised or presented had been granting quantity discounts
of at least the same magnitude with respect to 20 percent or
more of such or similar merchandise which he sold in the home
market (or in third country markets when sales to third countries
are the basis for comparison) and that such discounts had been
freely available to all purchasers, or (ii) the exporter can
demonstrate that the discounts are warranted on the basis of
savings specifically attributable to the quantities involved.
(11) The proposed amendment of section 14.7(b)(3) is being adopted
without change, as follows:
(3) Similar merchandise.--In comparing the purchase price or
exporterts sales price, as the case may be, with the selling
price in the home market, or for exportation to countries other
than the United States, in the case of similar merchandise
described in subdivisions (C), (D), (E), or (F) of section 212(3),
Antidumping Act, 192·1, as amended (19 U.S.C. 170a(3)), due
allowance shall be made for differences in the merchandise. In
this regard the Secretary will be guided primarily by the effect
of such differences upon the market value of the merchandise
but, when appropriate, he may also consider differences in cost
of manufacture if it is established to his satisfaction that the
amount of any price differential is wholly or partly due to such
differences.

- 6 in such generalized, summary or approximated form, such disclosu~
would still be of significant competitive advantage to a competitor
or would still have a significantly adverse effect upon a person -supplying the information or upon a person from whom he acquired
the information. As indicated in (b), however, the decision that
information is not entitled to protection from disclosure in its
original or in another form will not lead to its disclosure
unless the person supplying it consents to such disclosure.
(2) Information will ordinarily be regarded as appropriate for
disclosure if it
(i)
(ii)
(iii)

relates to price information;
relates to claimed freely available price
allowances for quantity purchases; or
relates to claimed differences in circumstances
of sale.

(3) Information will ordinarily be regarded as confidential
if its disclosure would
(i)
(ii)
(iii)

(iv)

disclose business or trade secrets;
disclose production costs;
disclose distribution costs, except to the extent
that such costs are Feliea-ea-te-j~stify accepted
as justifying allowances for quantity or differences
of circumstances of sale;
disclose the names of particular customers or the
price or prices at which particular sales were
madey .

~vt--aise±ese-iafeFffiatiea-waiea-we~±a-Be_ef_sigaifieaat
eem~etitive-aavaatage-te-a-eem~etiteFy_eF

{vit--affeet-ia-a-sigaifieaatly-aaveFse_way_aay_~eFsea
wRe-s~~~±iea-iafeFmatieaT-iae±~aiag-aay_iafeFffieFT
eF-aay-~eFsea-fFem-WRem-tRe-s~~~±ieF_ef_tRe
iBfeFffiatiea-ae~~iFea-itr

- 5 shall be treated as confidential. If it is so determined,
the information covered by the determination will not be made
available for inspection or copying by any person Ret other
than an officer or employee of the United States Government
etReF-tRaR or a person who has been specifically authorized
to receive it by the person requesting confidential treatment.
If it is determined that information submitted with such a
request, or any part thereof, should not be treated as confidential, or that summarized or approximated presentations
thereof should be made available for disclosure, the person
who has requested confidential treatment thereof shall be
promptly so advised and, unless he thereafter agrees that the
information, or any specified part or summary or approximated
presentations thereof, may be disclosed to all interested
parties, the information will not be made available for disclosure, but to the extent that it is self-serving it will be
disregarded for the purpose of the determination as to sales
below fair value aRtia~~iRg-~FeeeeaiRg, and no reliance shall
be placed thereon in this connection witR-tRe-~FeeeeaiRg.
(c) Standards for determining whether information will be
regarded as confidential. (1) Information will ordinarily
be considered to be confidential only if its disclosure would
ftave-a-8igRifieaRtly-aavep8e-effeet-a~eR-a-~ep8eR-8a~~lyiRg
tfte-iRfePfflatieR-ep-a~eR-a-~epseR-fpeffl-wReffl-Re-ae~aiFea-t Re
iRfePfflatieRT--FaptfteF,-if-aisele8aFe-ef-iRfeFfflatieR-iR-s~eei~ie
teFffls-ep-witR-iaeRtifyiRg-aetails-weala-Rave-a-sigRi~ieaRtly
aavepse-effeet-a~eR-tRe-~eF8eR-8a~~lyiRg-tRe-iRfeFfflatieR -eF
a~eR-aRy-~ep8eR-fpeffl-WReffl-fte-ae~aiFea-tRe-iRfeFfflatieR,-tRe
iRfePfflatieR-will-eFaiRapily-8e-eeRsiaeFea-a~~Fe~Fiate-feF
aiBelesape-iR-geReFali~ea,-sHfflfflaFy-eF-a~~Fexifflatea-feFffl,

witReat-iaeRtifyiRg-aetails,-if-it-is-aeteFffiiRea-tRat-tRis
eeaFse-eaR-8e-fellewea-witReat-its-RaviRg-tRe-sigRi~ieaRtly
aaveFse-effeet-wRieR-aiFeet-aiselesaFe-ef-tRe-i~eFfflatieR

weala-eRtailT be of significant competitive advantage to a
competitor or would have a significantly adverse effect upon
a person supplying the information or upon a person from
whom he acquired the information. Further, if disclosure
of information in specific terms or with identifying details
would be inappropriate under this standard, the information
will ordinarily be considered appropriate for disclosure in
generalized, summary or approximated form, without identifying
details, unless the Commissioner of Customs or the Secretary
of the Treasury or the delegate of either determines that even

- + -

for fair value purposes is purchase price or exporter's sales
price if sufficient information is available to so statej
otherwise a supplementary notice will be published in the
Federal Register as soon as possible which will specify which
of such prices is the appropriate basis of comparison for
fair value purposes. Upon receipt of such advice, the appraisers
shall proceed to withhold appraisement in accordance with the
pertinent provisions of section 14.9.

(6) As proposed, footnote "14a" in paragraph 14. 6(b) is being redesignated
"footnote 14." The former footnote 14 in paragraph 14.6(a) is being
eliminated.
(9) The proposed new section 14.6a is being adopted with changes, as
follows:
Section 14.6a

Disclosure of information in antidumping proceedings.

(a) Information generally available. In general, all information, but not necessarily all documents, obtained by the
Treasury Department, including the Bureau of Customs, in connection with any antidumping proceeding will be available
for inspection or copying by any interested person, ~ae1~aiBg
such as the producer of the merchandise, any importer, exporter or domestic producer of merchandise similar to that
which is the subject of the proceeding. With respect to
doclli~ents prepared by an officer or employee of the United
States factual material, as distingMished from recommendations and evaluations, contained in any such document will
be made available by summary or otherwise on the same basis
as information contained in other documents. Attention is
directed to section 24.12 relating to fees charged for providing copies of documents.
(b) Requests for confidential treatment of information. A~y
person who submits information in connection with an antidumping proceeding may request that such information, or any
specified part thereof, be held confidential. Information
covered by such a request shall be set forth on separate
pages from other informationj and all such pages shall be
clearly marked "Confidential Treatment Requested." The
Commissioner of Customs or the Secretary of tne Treasury or
the delegate of either will determine, pursuant to paragraph (c)
of this section, whether such information, or any part thereof,

- 3 such persons and firms will be specified. The notice shall
also specify the date on which information in proper form
was received and that date shall be the date on which
the ques~ion of dumping was raised or presented for
purposes of sections 20l(b) and 202(a) of the Antidumping
Act, 1921, as amended (19 u.s.c. l60(b) and l6l(a»
aRa-tRat-aate-sRall-ge-iRel~aea-iR-tRe-Retiee.
The
notice shall also contain a summary of the information
received. If a person outside the Customs Service
raised or presented the question of dumping, his name
shall be included in the notice unless a determination
under section l4.6a of these regulations requires that his
name not be disclosed.
(ii) the Commissioner shall thereupon proceed promptly
to decide whether or not reasonable grounds exist to
believe or suspect that the merchandise is being, or is
likely to be, sold at less than its foreign market value
(or, in the absence of such value, than its constructed
value). To assist him in making such decision the
COmmiSSioner, in his discretion, may conduct a brief
preliminary investigation into such matters, in addition
to the invoice or other papers or information presented
to him, as he may deem necessary.

(7) The proposed amendment of paragraph l4.6(e) is being adopted with
changes, as follows:
(e) If the Commissioner determines pursuant to paragraph
(d)(l)(ii) of this section, or in the course of an
investigation under paragraph (d)(3)(i) of this section,
that there are reasonable grounds to believe or suspect
that any merchandise is being, or is likely to be, sold at
less than its foreign market value (or, in the absence of such
value, than its constructed value) under the Antidumping Act,
he shall publish notice of that fact in the Federal Register,
furnishing an adequate description of the merchandise, the name
of each country of exportation, and the date of the receipt of
the information in proper form, and shall advise all appraisers
of his action. This notice may be referred to as the "Withholding of Appraisement Notice." If the belief or suspicion
relates only to certain shippers or producers, the notice
shall alse-iRel~ae-tRe-Rames-ef-s~eR-sRi~~eFs specify that
this is the case and that the investigation is limited to the
transactions of such shippers or producers. The notice shall
also specify whether the appropriate basis of comparison

- 2 -

sales price which may be accounted for by any difference
in taxes, discounts, incidental costs such as those for
packing or freight, or other items.
(4) The proposed new subparagraph 4 of section 14.6(b) is being
adopted without change, as follows:
(4) Such suggestions as the person furnishing the information may have as to specific avenues of investigation to
be pursued or questions to be asked in seeking pertinent
information.

(5) The proposed amendment of paragraph 14.6(c) is being adopted
without change, as follows:
(c) If any information filed pursuant to paragraph (b) does
not conform with the requirements of that paragraph, the
Commissioner shall return the communication to the person
who submitted it with detailed written advice as to the
respects in which it does not conform.
(6) The proposed amendment of paragraph 14.6(d)(1) is being adopted
with changes, as follows:
(d)(l) Upon receipt pursuant to paragraph (a) or (b) ,-eF-{e1
of this section of information in proper form:
(i) tRe-ge~ssieReF-sRall-~~~lisR-Betiee-e~-tRat-~aet
iB-tRe-FeaeFal-RegisteF,-wRieR-Retiee-may-~e-Fe~eFFea-te
as-tRe-~ARtia~~iBg-PFeeeeaiRg-Netiee~~--~Re-aate-e~-s~eR
Feeei~t the Commissioner shall conduct a summary
investigation. If he determines that the information is
patently in error or that the merchandise is not being
and is not likely to be imported in more than insignificant
quantities he shall so advise the person who submitted
the information and the case shall be closed. Otherwise,
the Commissioner shall publish a notice in the Federal
Register that information in proper form has been received
pursuant to paragraph (a) or (b) of this section. This
notice, which may be referred to as the "Antidumping
Proceeding Notice," will specify whether the information
relates to all shipments of the merchandise in question
from an exporting country, or only to shipments by certain
persons or firms; in the latter case, only the names of

•

.: ..... ::
..

..... .

TREASURY DEPARTMENT
WASHINGTON

November 30 1964
Amentment& of the Antidumping Regulations

Comparative print
showing changes between the
amendments adopted and those
published as proposals in the
Federal Register of April 1964
(Material deleted from April proposals
is indicate~ by canceling lin~; mat~rial
added is indicated by underlining.)
(1) The proposed amendment of the first sentence of paragraph 14.6(b)
is being adopted without change, as follows:
(b) Any person outside the Customs Service who has information that merchandise is being, or is likely to be,
imported into the United States under such circumstances
as to bring it within the purview of the Antidumping Act,
1921, as amended,14 may communicate such information in
writing to the Commissioner of Customs. * * *
(2) The proposed amendment of paragraph 14.6(b)(1) is being adopted
with a change, as follows:
(1) A detailed description or sample of the merchandise;
the name of the country from which it is being, or is
likely to be, imported; the name of the exporter or
exporters and producer or producers, if known; and the ports
or probable ports of importation into the United States.
If no sample is furnished, the Bureau of Customs may call
upon the person who furnished the information to furnish
samples of the imported and competitive domestic articles,
or either.
(3) The proposed amendment of paragraph 14.6(b)(2) is being adopted
with a change, as follows:
(2) Such detailed data as are reasonably available with
respect to values and prices indicating that such merchandise
is being, or is likely to be, sold in the United States at
less than its fair value, within the meaning of the
Antidumping Act, 1921, as amended, including information
as to any differences between the foreign market value or
constructed value and the purchase price or exporter's

- 5 The amendment as originally proposed has been further amended so
as to make it clear that cases will be closed out only when it is
demonstrated to the Secretary's satisfaction that this action is appropriate. The Secretary, in reaching his determination, will consider
such matters as the degree of assurance which he has that the objectionable practices have been terminated, whether the case involves deliberate
sporadic dumping, or other unusual circumstances which would make it
inappropriate to close the case, and whether any objections to cloSing
it are groundless or frivolous.
Offers of Sales

An amendment adopted in the form in which it was proposed last
April specifically authorizes the Treasury to disregard offers of sales
whenever it is clear from the circumstances that acceptance of the offer
could not reasonably be expected. For example, an offer of sale of
heavy winter overcoats for local consumption by a manufacturer in a
tropical country would not be regarded as an offer to which any weight
should be given.
Adjustment for Differences in Cost of Production
One of the amendments establishes a realistic standard for determining
what weight should be placed on differences in cost of production in
making determinations of the value of merchandise when the merchandise
being compared is not identical. This amendment, which is unchanged from
the form in which it was proposed last April, provides, in general, that
differences in cost of production will be taken into account only to the
extent that they affect the market value of the merchandise concerned.
Effective Date
The amendments will be published within a few days in the Federal
Register and will go into effect 30 days after their publication. No
amendment will be given retroactive effect and the provisions relating
to confidentiality of information, quantity discounts and similar merchandise will not apply to then pending cases.
---0---

Attached hereto is a comparative print showing the amendments in
the form in which they are being issued and indicating the extent to
which the proposed amendments published in the Federal Register on
April 23, 1964, have been changed.

Attachment

- 4 there shall be publication of an antidumping proceeding notice only
after a summary investigation has determined that the complaint is not
patently without foundation. Further, the new amendment provides that
both antidumping proceeding notices and withholding orders will be
directed only at the foreign firms whose shipments are actually involved.
Of course, if in any case all of the exporters from and producers in a
particular country were believed to be dumping, the antidumping proceeding notice and withholding order would be directed to all shipments
from that country.
Retroactivity
The amended regulations will eliminate retroactive application of
dumping duties by eliminating withholding of appraisement of goods
imported before the date of a withholding order in all cases except
those in which the importer is defined as having a relationship with
the exporter under section 207 of the Antidumping Act. (The class of
cases in which retroactivity would still obtain are those where, for
example, the exporter and importer are principal and agent or where
there is mutuality of ownership or control between exporter and importer.)
This amendment has been adopted in the same form in which it was proposed
last April.
Reimbursement of Dumping Duties by Exporter
Under the amended regulations it has been made feasible for an
exporter to warrant freedom from dumping duties with respect to merchandise purchased prior to an order withholding appraisement and to compensate the importer for a breach of this warranty. Unlike the proposals
announced in April, however, the amendment now being issued restricts
such warranties to Shipments of merchandise made before a finding that
sales have been made below fair value.
Termination of Proceedings
The new regulations contain a provision which will allow the termination of antidumping proceedings in some, but not all, instances in which
it is clear that prices have been revised to eliminate any dumping margin,
that sales to the United States have been terminated, or that the complaining person has concluded that no further purpose would be served by
the continuation of the antidumping proceedings.
Under this amendment, safeguards will be provided by requiring
publication of a Federal Register notice of the impending action with
an opportunity to interested parties to present their views. It is
believed that this procedure will allow some cases to be terminated
quickly.

- 3 Confrontation and Argument
The new amendments provide that the Treasury, at the request of
any interested person, will be prepared to hear the arguments of either
side in the presence of the other. As pointed out last April, the
Treasury has rejected as impractical and undesirable the suggestion of
some members of the public that antidumping procedures be determined
on the basis of public hearings of a quasi-judicial type. Further consideration of this matter has strengthened the Treasuryts view that
public hearings of this type would not be suitable in antidumping proceedings and would impose a costly and unjustified burden upon exportations to the United States.
Members of the public,in commenting upon the provlslons for confrontation, pointed out that this amendment as originally proposed
appeared to be limited to situations in which the accuracy of information
was in dispute. They pointed out that there should be an opportunity to
argue with regard to other matters as well, e.g., questions of law. The
merit of this position has been recognized in the amendment which now
also makes it clear that there can be more than two interested parties
present at a confrontation.
An important change in this amendment is that it now specifically
provides that the Treasury Department may delay sending cases to the
Tariff Commission in order that the Treasury aspect of related cases
may be consolidated. The April notice did not deal with this matter
but the Treasury believes that this provision is nonetheless appropriate.
It reflects an administrative practice which has been followed by the
Department and does not establish any change of actual practice.

Quantity Discounts
The amendments have established a clear standard for determining
when and how allowances should be made with respect to sales in different
quantities. They specify that an allowance will ordinarily be made for
a quantity discount only if it is actually enjoyed with respect to
20 percent of the merchandise sold in the home market or in third country
markets where applicable or, in the alternative, unless it is costjustified. The amendment will provide that ordinarily a six months'
history of quantity discounts will be deemed to be a satisfactory basis
for a quantity allowance. The April proposals had required a year's
history in this respect.
Complaints
The provisions announced last April of the proposed regulations
with respect to the filing of complaints have been adopted substantially
as they were proposed. They have been changed, however, to provide that

- 2 -

the purpose of which is to increase efficiency and fairness but leave
unchanged the balance as between domestic producers on the one hand
and exporters on the other.
The following comments relate to a number of the more important
matters dealt with by the amended regulations:
Making Information Available
The present amendment departs from the heretofore prevailing rule
that virtually all information in an antidumping proceeding shall be
treated as confidential. Under the new regulations, all information
entered in connection with an antidumping proceeding will be made
available for inspection or copying by any interested person except
that the Treasury, on the request of the person who submitted the
information, may conclude on the basis of standards set forth in the
regulations that the information shall be treated as confidential. In
any case in which information is submitted with the request that it be
treated as confidential and the Treasury Department denies the request,
the person submitting the information will have his choice of having
the information disregarded or of acquiescing in its being treated as
non-confidential. Provision is also made for deletion of identifying
details the inclusion of which would be harmful to the person submitting
the information. The amendment also provides that certain information
may be disclosed by the Treasury in generalized or summarized fashion
rather than in detail when this course is deemed appropriate in the
interests of maximum disclosure coupled with protection of confidentiality.
The standards which will guide the Treasury in determining which classes
of information should or should not be regarded as confidential are
spelled out in considerable detail in new section 14.6a(c).
It is believed that the net effect of this proposal will be to open
up a large body of information to interested persons without detriment
to the persons who supply information. The amendment which has been
adopted is essentially the same as that proposed last April but its
drafting has been improved. One drafting change is deSigned to make it
entirely clear to foreign producers that under no circumstances will
information which was submitted as confidential be disclosed without
the consent of the person who supplied it, regardless of whether the
Treasury believes that the claim to confidential treatment is justified.
This had been intended by the language originally proposed but some
comments indicated that additional assurance was necessary. The amendment also makes it clear that whenever the Treasury rejects a claim that
information is entitled to confidential treatment the information will
not be given weight as supporting the submitter1s'position until the
submitter agrees to an appropriate disclosure of the information.

•

.: ..... ::
.-:.
.....

TREASURY DEPARTMENT
.

WASHINGTON

December 41 1964
AMENDMENTS TO THE ANTIDUMPING REGULATIONS

BACKGROUND MEMORANDUM
On April 23, 1964, the Treasury Department published in the Federal
Register proposed amendments to the antidumping regulations an,l inv-ited
comment of the public thereon. A background memorandum issued at the
time made the following observations:
"The changes in the antidumping regulations which are
presently proposed are based in large part on the comments
received both orally and in writing in connection with the
hearing which was held on January 23, 1964. In addition,
the proposed amendments reflect the views of the experts
brought in by the Treasury Department as consultants with
regard to this matter. Finally, they are based in part on
suggestions emanating from within the Department.
"To some extent, the interests of those concerned with
domestic production and those concerned with imports are
necessarily inconsistent, and it is impossible to satisfy
one without dissatisfying the other. Analysis of the basic
problems, however, has disclosed a surprisingly large area
in which there is room for improvement which it is believed
would be welcomed by domestic producers, importers and
exporters alike.
IIThis is the area to which the major part of the proposed
revisions is directed. Their adoption would, it is believed,
contribute significantly to sound administration of Treasury's
antidumping procedures. The proposed amendments are not
designed to make the administration of the Antidumping Act
either more or less restrictive. 1I
As a result of the notice of April 23, the Treasury Department
received approximately sixty statements of views from domestic producers,
importers, exporters, foreign governments and various associations either
directly or through their legal counsel. Many of these contained lengthy,
carefully thought-out, helpful comments. To the extent that the Treasury
has believed that these comments exposed deficiencies in the proposed
amendments or suggested improvements, they have been used as the basis
for further changes. It should be noted, however, that the comments and
views received have not resulted in radical changes in the regulations
which were proposed in April. The changes to which they have led will
improve the amendments and not affect their character as a set of rules

- 4 number of statements were received from domestic producers,
importers, exporters, foreign governments and various associations
The new amendments emerged from this study and broad range of
comments.
The amendments will be published shortly in the Federal
Register and will go into effect 30 days after their publication.
No amendment will be given retroactive effect and the provisions
~p

relating to confidentiality of information, quantity discounts

~~d similar merchandis~will not apply to pending cases.
A comparison print is available from the Treasury upon
request for those persons interested in the differences between
the amendments proposed earlier and those now being adopted.

000

- 3 -

Establish standards for determining when differences

in sales volumes abroad and in the United States provide
a basis for making quantity allowances in price comparisons.
3.

Eliminate, in large part, the retroactive applica-

tion of dumping duties.

At present, such duties can be

imposed on goods imported as far back as four months prior
to the receipt of a complaint.
4.

Allow foreign exporters to reimburse to United

States importers dumping duties charged on certain shipments
made to the United States.
The changes came after a thorough study by the Treasury,
with the assistance of academic consultants.

Amendments were

proposed earlier this year after discussion of the subject at
a well-attended public hearing.

Following this, a large

- 2 material submitted by the parties, and the parties in a dumping
dispute have argued their positions to the Treasury privately
and separately.
Henceforth, evidence submitted in confidence to help the
Treasury reach a

judg~ment

will be accepted and treated as

confidential only if the Treasury is itself satisfied that the
nature of the material requires confidential treatment.

However,

even though the Treasury may not agree that the material warrants
confidential treatment, the Treasury will not disclose i tif the

/ ~ r;F..'sa.

(:A

person submitting it refuses to authorize disclosur~
information will not be given weight in support of the submitter's
position.
In addition, the new regulations will:
1.

Allow interested persons to argue their cases

before the Treasury in each other's presence, rather than
separately.

~n£'o

1etternead
December

4, 1964

FOR RELEASE 11: 00 AM . -,"
FRIDAY, DECEMBER 4, 1964
TREASURY ANNOUNCES CHANGES IN
ANTIOUMPING REG~wATIONS
The United States moved today to improve its procedures for
determining whether certain foreign merchandise or commodities
are being sold in the United States at prices lower than those
charged in the exporters' home market.
The Treasury D2partment, under the Antidumping AC4 must
decide in specific cases whether such practices are taking place.
Affirmative decisions are passed to the U. So Tariff Commission,
which must then determine that the particular American industries
affected have been injured before invoking additional customs
duties which are provided under the law.
In reaching its decisions as to whether the sales of imported
merchandise come within the legal definition of "pumping", the
Treasury has been willing to accept as "confidential" any

TREASURY DEPARTMENT

December 4, 1964
FOR RELEASE 11:00 A.M., EST
FRIDAY, DECEMBER 4, 1964
TREASURY ANNOUNCES CHANGES IN
ANTIDUMPING REGULATIONS
The United States moved today to improve its procedures for
determining whether certain foreign merchandise or commodities
are being sold in the United States at prices lower than those
charged in the exporters' home market.
The Treasury Department, under the Antidumping Act, must
decide in specific cases whether such practices are taking place.
Affirmative decisions are passed to the U. S. Tariff Commission,
which must then determine that the particular American industries
affected have been injured before invoking additional customs
duties which are provided under the law.
In reaching its decisions as to whether the sales of imported
merchandise come within the legal definition of "dumping", the
Treasury has been willing to accept as "confidential" any material
submitted by the parties, and the parties in a dumping dispute have
argued their positions to the Treasury privately and separately.
Henceforth, evidence submitted in confidence to help the
Treasury reach a judgment will be accepted and treated as
confidential only if the Treasury is itself satisfied that the
nature of the material requires confidential treatment. However,
even though the Treasury may not agree that the material warrants
confidential treatment, the Treasury will not disclose it if the
person submitting it refuses to authorize disclosure -- but, in these
circumstances, the information will not be given weight in support
of the submitter's position.
In addition, the new regulations will:

D-1426

Allow interested persons to argue their cases
berore the Treasury in each other's presence,
rather than separately.

Establish standards for determining when differences
in sales volumes abroad and in the United States
provide a basis for making quantity allowances in
price comparisons.

- 2 3.

Eliminate, in large part, the retroactive
application of dumping duties. At present,
such duties can be imposed on goods imported
as far back as four months prior to the
receipt of a complaint.

Allow foreign exporters to reimburse to
United States importers dumping duties
charged on certain ihipments made to the
United States.

The changes came after a thorough study by the Treasury, with
the assistance of academic consultants. Amendments were proposed
earlier this year after discussion of the subject at a well-attended
public hearing. Following this, a large number of statements were
received from domestic producers, importers, exporters, foreign
governments and various associations. The new amendments emerged
from this study and broad range of comments.
The amendments will be published shortly in the Federal
Register and will go into effect 30 days after their publication.
No amendment will be given retroactive effect and the provisions
relating to confidentiality of information, and quantity discounts
will not apply to pending cases.
A comparison print is available from the Treasury upon request
for those persons interested in the differences between the
amendments proposed earlier and those now being adopted.

000

•

:: ..... ::

..... .

TREASURY DEPARTMENT
WASHINGTON

December 41 1964
AMENDMENTS TO 'l'RE ANTIDUMPING REGULATIONS

BACKGROUND MEMORANDUM
On April 23, 1964, the Treasury Department published in the Federal
Register proposed amendments to the antidumping regulations an· l in vi ted
comment of the public thereon. A background memorandum issued at the
time made the following observations:
"The changes in the antidumping regulations which are
presently proposed are based in large part on the comments
received both orally and in writing in connection with the
hearing which was held on January 23, 1964. In addition,
the proposed amendments reflect the views of the experts
brought in OJr the Treasury Department as consultants with
regard to this matter. Finally, they are based in part on
suggestions emanating from within the Department.
"To some extent, the interests of those concerned with
domestic production and those concerned with imports are
necessarily inconsistent, and it is impossible to satisfy
one without dissatisfying the other. Analysis of the basic
problems, however, has disclosed a surprisingly large area
in which there is room for improvement which it is believed
would be welcomed by domestic producers, importers and
exporters alike.
"This is the area to which the major part of the proposed
revisions is directed. Their adoption would, it is believed,
contribute significantly to sound administration of Treasury's
antidumping procedures. The proposed amendments are not
designed to make the administration of the Antidumping Act
either more or less restrictive."
As a result of the notice of April 23, the Treasury Department
received approximately sixty statements of views from domestic producers,
importers, exporters, foreign governments and various associations either
directly or through their legal counsel. Many of these contained lengthy,
carefully thought-out, helpful comments. To the extent that the Treasury
has believed that these comments exposed deficiencies in the proposed
amendments or suggested improvements, they have been used as the basis
for further changes. It should be noted, hOvlever, that the comments and
views received have not resulted in radical changes in the regulations
which were proposed in April. The changes to which they have led will
improve the amendments and not affect their character as a set of rules

- 2 -

the purpl),~e c'::" 'iiLi:::h is t::' i:1crease efficiency and fairness but leave
unchan€',ed the balance as::,etl.,een domestic producers on the one hand
and expc,rters on the other.
The :teLLOwing comments relate to a number of the more important
matters leal G v1i th by the amended regulations:
Hahne; Information Available
The present amendment departs from the heretofore prevailing rule
that virtually all information in an antidumping proceeding shall be
treated as confidential. Under the new regu~ations, all information
entered in connection with an antidumping proceeding will be made
available for inspection or copying by any interested person except
that the Treasury, on the request of the person who submitted the
inforrnation, may conclude on the basis of standards set forth in the
regulations that the information shall be treated as confidential. In
any case in which information is submitted vlith the request that it be
treated as confidential and the Treasury Department denies the request,
the person submitting the information will have his choice of having
the information disregarded or of acquiescing in its being treated as
non-confidential. Provision is also made for deletion of identifying
details the inclusiol', of whicr: would be harmful to the person submitting
the information. The amendment also provides that certain information
may be disclosed by the Treasury in generalized or summarized fashion
rather than in detail when this course is deemed appropriate in the
interests of maxim~~ disclosure coupled with protection of confidentiality.
The standards which will guide the Treasury in determining which classes
of information should or should not be regarded as confidential are
spelled out in considerable detail in new section 14.6a(c).
It is believed that the net effect of this proposal will be to open
up a large body of information to interested persons without detriment
to the persons who supply information. The amendment which has been
adopted is essentially the same as that proposed last April but its
drafting has been improved. One drafting change is designed to make it
entirely clear to foreign producers that under no circumstances will
information vlhich was submitted as confidential be disclosed without
the consent of the person who supplied it, regardless of whether the
Treasury believes that the claim to confidential treatment is justified.
This had been intended by the langu:lge originally proposed but some
comments indicated that additional assurance was necessary. The amendment also makes it clear that whenever the Treasury rejects a claim that
information is entitled to confidential treatment, the information will
not be given weight as supporting the submitter's position until the
submitter agrees to an appropriate disclosure of the information.

- 3 Confrontation und ArCiument
The new wnendrnentG provide that the Treasury, at the requesti'elf
any interested person, will oe prepared to hear the UT!;umentG oj' either
side in the preGence 01' the other. As pointed out last J\pt'LL, the
Treusury hus rejected us illlpracth:al and undesiruule tbe sUL':!~estion or
some memoers of the public that antidumpin!~ procedures be determined
on the basis of puolic hearinGs of a quasi-judicial type. }'urther considerution 01' this matter has strenc;thened the Treasury's view thQt
public hearinr;s 01' this type would not be suitable in antiu.wnpinl~ proceedinc;s and would impose u costly and unjustified burden upon exportations to the United States.
Members of the public, in commentine; upon the provlslon:j fur confrontution, pointed out thQt this amendment as oric;inally proposed
appeared to be limited to Gituations in which the accuracy of information
was in dispute. They pointed out that there should ue Qn opportunity to
urc;ue with rec;urd to other mutters as well, e.[j., questions of law. The
merit of this position hus been recor;nized in the amendment which now
also makes it clear thut there can be more than two intereGted purties
preGent at u conl'rontation.
An importunt chanl~e in this amendment is that it now sped fi cally
provides that the Treusury Department may delay sendine; cases to the
Tariff Commission in order that the Treasury aspect of reluted cuses
may be consolidated. The April notice did not deal with this matter
but the Treasury believes that this provision is nonethelecc n:ppropriate.
It reflects an adminictrative practice which has been followed by the
Department and does not establish any change of actual pruc:tice.
Quantity Discounts
The amendments have estublished a clear standard for determining
when and how allowances should be made with respect to sales in different
qua.ntities. They specify thut an allowance will ordinarily be made for
a quantity discount only if it is actually enjoyed with respect to
20 percent of the merchandice Gold in the home market or in third country
markets where applicable or, in the alternative, unless it is costjustified. The amendment will provide that ordinarily a six months'
history of quantity discounts will be deemed to be a satisfactory basis
for a quantity allowance. The April proposals ha.d required a year's
history in this respect.
Complaints
The provisions announced last April of the proposed re~ulations
with respect to the filing of complaints have been adopted substantially
as they were proposed. They have been chan~ed, however, to provide that

- 4 there shall be publication of an antidumping proceeding notice only
after a summary investigation has determined that the complaint is not
patently without foundation. Further, the new amendment provides that
both antidumping proceeding notices and withholding orders will be
directed only at the foreign firms whose shipments are actually involved.
Of course, if in any case all of the exporters from and producers in a
particular country were believed to be dumping, the antidumping proceeding notice and withholding order would be directed to all Shipments
from that country.
Retroactivity
The amended regulations will eliminate retroactive application of
dumping duties by eliminating withholding of appraisement of goods
imported before the date of a withholding order in all cases except
those in which the importer is defined as having a relationship with
the exporter under section 207 of the Antidumping Act. (The class of
cases in which retroactivity would still obtain are those where, for
example, the exporter and importer are principal and agent or where
there is mutuality of ownership or control between exporter and importer.)
This amendment has been adopted in the same form in which it was proposed
last April.
Reimbursement of Dumping Duties by Exporter
Under the amended regulations it has been made feasible for an
exporter to warrant freedom from dumping duties with respect to merchandise purchased prior to an order withholding appraisement and to compensate the importer for a breach of this warranty. Unlike the proposals
announced in April, however, the amendment now being issued restricts
such warranties to shipments of merchandise made before a finding that
sales have been made below fair value.
Termination of Proceedings
The new regulations contain a provision which will allow the termination of antidumping proceedings in some, but not all, instances in which
it is clear that prices have been revised·to eliminate any dumping margin,
that sales to the United States have been terminated, or that the complaining person has concluded that no further purpose would be served by
the continuation of the antidumping proceedings.
Under this amendment, safeguards will be provided by requiring
publication of a Federal Register notice of the impending action with
an opportunity to interested parties to present their views. It is
believed that this procedure will allow some cases to be terminated
quickly.

c·

)

The umendment as orir,inally proposed has been further amended so
us to make it clear that L:aCieC will be closed out only when it is
demonstrated to the Gecretary I s satisfaction that this action is appropriate. The Secreto,ry, in reachinl~ his determinution, will consider
such matters as the der;ree uf asc;urance whiL:h he has that the objectionable practices ho,ve been terminated, whether the L:use inv()lves deliberate
sporadic dwwpinl';, or other unusual circumstances which would make it
iml.Jrpropriate to close the case, and whether any oujections to closj.nr;
it urc groundless or frivulous.
Offers of Sales
1m amendment adopted in the form in which it was proposed last
April specifically authorizes the Treasury to disregard offers 01' sales
whenever it is clear from the circumstances that u,L:ceptance of the offer
could not reasonably be expected. For example, an offer of sale of
heavy winter overcoats for local consumption by a manufacturer in a
tropical country would not be rec;arded as an offer to which any weic;ht
should be c;iven.
Adjust:llent for Differenc.:es in Cost of Producti on
One of the amendrncnts es Lui)lishes a realistic stundo,rd for determininc;
what weic;ht should be placed on differences in cost of production in
makine; determinations of the value of merchandise when the merchandise
beinc; compared is not identical. This amendment, which is unL:ha,n[';ed from
the form in which it was proposed last April, provides, in C;eneral, that
differences in cost of production will be taken into account only to the
extent that they affect the market value of the merchandise concerned.
Effective Date
The amendments will be published within a few days in the Federal
Rec;ister and will e;o into effect 30 days after their publication. No
amendment will b8 C;iven retroactive effect and the provisions relatinc;
to confidentiu.lity of information, quantity discounts and similar merchQ,ndise will not apply to then pendint~ casel:>.
---0---

Attached hereto is a comparative print showing the amendments in
the form in which they are being issur;<1 and indicating the extent to
which the proposed amendments published :in the Federal Register on
April 23, 1964, huve been chan{,:ed.

Attachment

:: ..... ::
. -..
..:'

•

.....

TREASURY DEPARTMENT
WASHINGTON

.AMENDMENTS OF THE ANl'IDUMPING

REGULATI~S

December 4, 1964

CWPARATIVE PRINT SHOWING
CHANGES BErWEm THE AMENDMENTS ADOPTED AND THffiE
PUBLISHED AS PROPffiALS m'
THE FEDERAL REGISTER OF
APRIL 23, 1964

(Material deleted fram April proposals
is indicated by canceling lines; material
added is indicated by underlining.)
(1) The proposed amendment of the first sentence of paragraph 14.6(b)
is being adopted without change, as follows:
(b) Any person outside the Customs Service who has information that merchandise is being, or is likely to be,
imported into the United States under such circumstances
as to bring it within the purview of the Antidumping Act,
1921, as amended,14 may communicate such information in
writing to the Commissioner of Customs. * * *
(2) The proposed amendment of paragraph 14.6(b)(1) is being adopted
with a change, as follows:

(1) A detailed description or sample of the merchandise;
the name of the country from which it is being, or is
likely to be, imported; the name of the exporter or
exporters and producer or producers, if known; and the ports
or probable ports of importation into the United States.
If no sample is furnished, the Bureau of Customs may call
upon the person who furnished the information to furnish
samples of the imported and competitive domestic articles,
or either.
(3) The proposed amendment of paragraph 14.6(b)(2) is being adopted
with a change, as follows:
(2) Such detailed data as are reasonably available with
respect to values and prices indicating that such merchandise
is being, or is likely to be, sold in the United States at
less than its fair value, within the meaning of the
Antidumping Act, 1921, as amended, including information
as to any differences between the foreign market value or
constructed value and the purchase price or exporter's

- 2 -

sales price which may be accounted for by any difference
in taxes, discounts, incidental costs such as those for
packing or freight, or other items.
(4) The proposed new subparagraph 4 of section l4.6(b) is being
adopted without change, as follows:
(4) Such suggestions as the person furnishing the information may have as to specific avenues of investigation to
be pursued or questions to be asked in seeking pertinent
information.

(5) The proposed amendment of paragraph l4.6(c) is being adopted
without change, as follows:
(c) If any information filed pursuant to paragraph (b) does
not conform with the requirements of that paragraph, the
Commissioner shall return the communication to the person
who submitted it with detailed written advice as to the
respects in which it does not conform.
(6) The proposed amendment of paragraph l4.6(d)(1) is being adopted
with changes, as follows:
(d)(l) Upon receipt pursuant to paragraph (a) or (b) ;-eF-tej
of this section of information in proper form:

(i)

tRe-ge~seieReF-eRall-~~81i8R-Retiee-ef-tRat-faet
iR-tRe-~eaeFal-RegieteFr-wRieR-Retiee-may-8e-FefQFFea- te

as-tRe-~ARtia~~iRg-PFeeeeaiRg-WetieeT~--~Re-aate-ef-B~ eR

the Commissioner shall conduct a summary
investigation. If he determines that the information is
patently in error or that the merchandise is not being
and is not likely to be imported in more than inSignificant
quantities he shall so advise the person who submitted
the information and the case shall be closed. otherwise,
the Commissioner shall publish a notice in the Federal
Register that information in ro
ursuant to ara ra h a or b
notice, which may be referred to
Proceeding Notice," will specify whether the information
relates to all shipments of the merchandise in question
from an exporting country] or only to shipments by certain
persons or firms; in the latter case] only the names of
Feeei~t

- 3 such persons and firms will be specified. The notice shall
also specify the date on which information in proper form
was received and that date shall be the date on which
the question of dumping was raised or presented for
purposes of sections 201(b) and 202(a) of the Antidwnpin~
Act, 1921, as amended (19 U.S.C. 160(b) and 161(a))
aRa-tRat-aate-sRall-8e-iRel~aea-iR-tRe-Retiee.
The
notice shall also contain a summary of the information
received. If a person outside the Customs Service
raised or presented the question of dumpin~, his name
shall be included in the notice unless a determination
under section 14.6a of these regulations requires that his
name not be disclosed.
(ii) the Commissioner shall thereupon proceed promptly
to decide whether or not reasonable grounds exist to
believe or suspect that the merchandise is being, or is
likely to be, sold at less than its foreign market value
(or, in the Clbsence of such value, than its constructed
value). To assist him in making such decision the
Commissioner, in his discretion, may conduct a brief
preliminary investigation into such matters, in addition
to the invoice or other papers or information presented
to him, as he may deem necessary.

(7) The proposed amendment of paragraph 14.6(e) is bein~ adopted with
changes, as follows:
(e) If the Commissioner determines pursuant to parac:raph
(d)(l)(ii) of this section, or in the course of an
investigation under paragraph (d)(3)(i) of this section,
that there are reasonable grounds to believe or suspect
that any merchandise is being, or is likely to be, sold at
less than its foreign market value (or, in the absen<:e of such
value, than its constructed value) under the Antidumping Act,
he shall publish notice of that fact in the Federal Rec:ister,
furnishing an adequate description of the merchandise, the name
of each country of exportation, and the date of the receipt of
the information in proper form, and shall advise all appraisers
of his action. This notice may be referred to as the "Withholding of Appraisement Notice." If the belief or suspicion
relates only to certain shippers or prOducers, the notice
shall alse_iRel~ae-tRe-RaffleS-ef-s~eR-sRi~~eF8 specify that
this is the case and that the investigation is limited to the
transactions of such Shippers or producers. The notice shall
also specify whether the appropriate basis of comparison

- 4 for fair value purposes is purchase price or exporter's sales
price if sufficient information is available to so state;
otherwise a supplementar'y notice will be published in the
Federal Register as soon as possible which will specify which
of such prices is the appropriate basis of comparison for
fair value purposes. Upon receipt of such advice, the a~praisers
shall proceed to withhold appraisement in accordance with the
pertinent provisions of section 14.9.
(6) As proposed, footnote "14&" in paragraph 14.6(b) is being redesi~nated
"footnote 14." The fonner footnote 14 in paragraph lLL 6 (a) is be! ng
eliminated.
(9) The proposed new section 11+.6a is being adopted with changes, as
follows :

section 14.6a

Disclosure of information in antidumping proceedings.

(a) Information generally available. In general, all lnforrnation, but not necessarily all documents, obtained b:.- the
Treasury Department, including the Bureau of Customs, in connection with any antidumping proceeding will be available
for inspection or copying by any interested person, iR@1~QiRg
such as the producer of the merchandise, any importer, exporter or domestic producer of merchandise similar to that
which is the subject of the proceeding. With respect to
documents prepared by an officer or employee of the United
States factual material, as distinguished from recotrlH;endations and evaluations, contained in any such document will
be made available by summary or otherwise on the same basis
as information contained in other documents. Attention is
directed to section 24.12 relating to fees charged for rroviding copies of documents.
(b) Requests for confidential treatment of information. A~y
person who submits information in connection with an antidumping proceeding may request that such information, or any
specified part thereof, be held confidential. Information
covered by such a request shall be set forth on separate
pages from other information; and all such pages shall be
clearly marked "Confidential Treatment Requested." The
Commissioner of Customs or the Secretary of the Trea.sury or
the delegate of either will determine, pursuant to paragraph (c)
of this section, whether such information, or any part thereof,

- 5 shall be treated as confidential. If it is so determined,
the information covered by the determination will not be made
available for inspection or copying by any person ast other
than an officer or employee of the United States Government
stRep-tRaa £E a person who has been specifically authorized
to receive it by the person requesting confidential treatment.
If it is determined that information submitted with such a
request, or any part thereof, should not be treated as confidential, or that summarized or approximated presentations
thereof should be made available for disclosure, the person
who has requested confidential treatment thereof shall be
promptly so advised and, unless he thereafter agrees that the
information, or any specified part or summary or approximated
presentations thereof, may be disclosed to all interested
parties, the information will not be made available for disclosure, but to the extent that it is self-serving it will be
disregarded for the purpose of the determination as to sales
below fair value aatia~~iRg-~pseeeaiag, and no reliance shall
be placed thereon in this connection witk-tRe-~pseeeaiRg.
(c) Standards for determinin whether information will be
regarded as confidential.
1
Information will ordinarily
be considered to be confidential only if its disclosure would
ftave-a-sigRifieaRtly-aaveFge-effeet-~~sR-a-~eFssR-s~~~lyiRg
tfte-iRfeFfflatisR-eF-~~eR-a-~eFssR-fFsm-wksm-ke-ae~~ipea-tRe
iRf8FffiatieRT--P~FtfteF;-if-aiselsa~pe-sf-iRfsFmatisR-iR-s~eei~ie
teFffis-eF-witk-iaeRtifyiRg-aetails-ws~la-Rave-a-sigRifieaatly
aaveFge-effeet-H~sR-tRe-~eF8sR-sH~~lyiag-tke-iafsFmatisa-SF
H~eR-aay-~eF8ea-fFsm-WRem-fte-ae~HiFea-tRe-iafsFmatisay-tke
iRfeFmatieR-will-eFaiRaFily-ee-esa8iaeFea-a~~Fs~Fiate-~SP
aiBelsBHFe-iR-geaeFaliseay-sHMmaFy-sF-a~~Fsximatea-fsFmy

witftsHt-iaeatifyiag-aetailsy-if-it-is-aeteFffiiaea-tkat-tRis
eeHFse-eaa-ee-fellswea-witksHt-ita-kaviag-tke-sigaifieaatly
aaveFse-effeet-wRiea-aiFeet-aiselssHPe-sf-tke-iafsFmatisa
ws~la-eatailT be of significant competitive advantage to a
competitor or would have a significantly adverse effect upon
a person supplying the information or upon a person from
whom he acquired the information. Further, if disclosure
of information in specific terms or with identifying details
would be inappropriate under this standard, .the information
will ordinarily be considered appropriate for disclosure in
generalized, summary or approximated form, without identifying
details, unless the Commissioner of Customs or the Secretary
of the Treasury or the delegate of either determines that even

- 6 -

(2) Information will ordinarily be regarded as appropriate for
disclosure if it
(i)
(ii)
(iii)

relates to price information;
relates to claimed freely available price
allowances for quantity purchases; or
relates to claimed differences in circumstances
of sale.

(3) Information will ordinarily be regarded as confidential
if its disclosure would
(i)
(ii)
(iii)

(iv)

disclose business or trade secrets;
disclose production costs;
disclose distribution costs, except to the extent
that such costs are pel~ea-9B-~9-~~9tifY accepted
as justifying allowances for quantity or differences
of circumstances of sale;
disclose the names of particular customers or the
price or prices at which particular sales were
madef .

~vt--Qige198e-iBf9Fma~~9B~WRieR-WQ~~a-98_9f_9igRifie~Rt
ee.p8~~~~v.-aavaB~ag.-~e-a-e9mp8titePT_ep

~Vit--aff.e~-~B-a-8~gBif~QaB~~y-aQVep8._waY_~By_~epSeR

WR&-8~pp~~.a-iBf&Paa~i8BT-~BQ1~aiBg-aRy_iRfeFmePT
&P-&BY -pep99B -fp&JIl-WR8J1i-~Re -9~pp~ ie p-ei" -~R9
iBf8Fma~~8B-aet~ip8Q-i~r

- 7 (10) The proposed amendment of section 14.7(b)(1) is being adopted
with a change as follows:
Section 14.7(b)(1) Quantities.--In comparing the purchase price
or exporter's sales price, as the case may be, with such
applicable criteria as sales or offers, on which a determination
of fair value is to be based, reasonable allowances will be made
for differences in quantities if it is established to the
satisfaction of the Secretary that the amount of any price
differential is wholly or partly due to such differences. In
determining the question of allowances for differences in
quantity, consideration will be given, among other things, to
the practice of the industry in the country of exportation with
respect to affording in the home market (or third country
markets, where sales to third countries are the basis for comparison) discounts for quantity sales which are freely available
to those who purchase in the ordinary course of trade. Allowances for price discounts based on sales in large quantities
ordinarily will not be made unless (i) the exporter during the
y8a~ six months prior to the date when the question of dumping
was raised or presented had been granting quantity discounts
of at least the same magnitude with respect to 20 percent or
more of such or similar merchandise which he sold in the home
market (or in third country markets when sales to third countries
are the basis for comparison) and that such discounts had been
freely available to all purchasers, or (ii) the exporter can
demonstrate that the discounts are warranted on the basis of
savings specifically attributable to the quantities involved.
(11) The proposed amendment of section 14.7(b)(3) is being adopted
without change, as follows:
(3) Similar merchandise.--In comparing the purchase price or
exporter's sales price, as the case may be, with the selling
price in the home market, or for exportation to countries other
than the United States, in the case of similar merchandise
described in subdivisions (C), (D)1 \E), or (F) of section 212(3),
Antidumping Act, 1921, as amended ~19 U.S.C. l70a(3)), due
allowance shall be made for differences in the merchandise. In
this regard the Secretary will be guided primarily by the effect
of such differences upon the market value of the merchandise
but, when appropriate, he may also consider differences in cost
of manufacture if it is established to his satisfaction that the
amount of any price differential is wholly or partly due to such
differences.

- 8 (12) The proposed amendment of section 14.7(b)(4) is being adopted
without change, as follows:
Section 14.7(b)(4) Offering price. In the deter.mination of
fair value, offers will be considered in the absence of sales
but an offer made in circumstances in which acceptance is not
reasonably to be expected will not be deemed to be an offer.
(13) The proposed new paragraph (9) of section 14.7(b) is being adopted
with changes, as follows:
Section 14.7(b)(9) ~ik81~a99a-9~-8a18B-8t-1888-~aaR-~8ip-val~9y
Revision of prices or other changed circumstances.
~~~--~8V~8~9R-8~-~P~Q8BY Whenever the Secretary of the
Treasury is satisfied that aR-8K~9Pt8P, promptly after
~~aPRiRg the commencement of an antidumping investigation
w!tR-pee~eet-t8-aie-BaipmeRt8,-aaB-pev~B8a-a,.-,p!e8B-e8

a8-t8-el~miRate-tR8-1ik81ia98a-9~-aie-ea188-'B-.ae-YBit8a
.~a~8-98iRg-at-~piQe8-gelew-Ri8-eempapaBle-8.a.B-iB-tA8

R8ae-Eapk8t-t9P-~R-tRipa-ee~tpY-mapket6y-wk.B-lalee-t9
~aipa-ee~tp~ee-ape-tRe-9aei8-f9P-e9MpapieeB1-ep-ka81-witRe~t
iRteRt!8R-te-pee~me-taem,-t8PE~Rat8a-aiB-8a.e8-~e-tae-YRit8a

.tatee, either (1) price revisions have been made which
eliminate the likelihood of sales below fair value and that
there is no likelihood of resum tion of the rices which
revailed before such revisions or 2 sales to the United
States of the merchandise have terminated and will not be
resumed; or whenever the Secretary concludes that there
are other changed circumstances on the basis of which it
may no longer be appropriate to continue an antidumping
investigation, the Secretary shall publish a notice to
this effect in the Federal Register. ~8-Re~'Qe-8aa•• -a189
6t8te-tRat-tRe-e~eptepLe-aet~eR-ie-eeReiaep8Q-te-B8-eviaeRee

tkat-Re-ie-Ret-eelliRg-aaa-ie-Ret-likely-te-eela-881ew-faip
val~e-aRa-taat-tRe-~eepetapY-will-e8-aet8FmiR.-~888
~v~a8Re8-ep-ap~eRt-t8-tR8-Q9RtpaPy-ie-ppe8eft.ei-witAiB
~Ripty-aayey

The notice shall state the facts relied on
by the Secretary in publishing the notice and that those
facts are considered to be evidence that there are not and
are not likely to be sales below fair value. The notice
shall also state that unless persuasive evidence or argument
to the contrary is presented within 30 days the Secretary
will determine that there are not and are not likely to be
sales below fair value.

- 9 -

r -~ -changed- "C'±rctmts-Lancet;!,".-

-("'.l+

'Waeaevel' -a -Jlel'eeR -wae

aae-f~~ea-~~e~a~~eR-~a~aR~-~e-8eet~eR-l4r'fejy_~piep_te
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tae-eeel'etal'Y-e~-tae-~peae~-taat-Re-Re-leRgep_eelieves
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al'e-~ike~y-te-eer-aale8-Belew-~aip-val~e-witR-pe8J1eQt_t9
tae-mel'eaaaaiee-te-waiea-ai8-~~eP.MatieR-pelateer_tRe

eeel'etal'Y-maY-Jl~Blisa-a-Retiee-e~-tRis-~aet-iR-tRe_Weeepal
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tRat-aHY-segmeRt-e~-aR-iRa~stl'Y-iRtel'estea-iR-tRe-aRtia~JliRg

JlpeeeeaiRg-Believes-tRat-it-ie-aeeil'aele-tRat-tRe-aeteFmiRatieR
~peviaea-~ep-iR-seetieR-l49~~aj-Be-maae,-tRe-~emmissieRel'-e~
~~stem8-aRQ-tRe-~eel'etapY-e~-tRe-~eas~-8Rall-Jll'eeeea-iR
aeeel'aaeee-witR-tRe-JlPevieieR8-e~-tRat-8eetieRy---gtRe~ise
tae-a:atia~JliRg-Jll'eeeeaiRg-maY-Be-ele8ea-witR-a-aeteFmiRatieR
tRat-tRi8-aetieR-Ra8-eeeR-takeR-~~P8~Rt-te-tRe-JlPeeea~pee

RepeiR-eesepieeQy
(14) The proposed amendment of section 14.8(a) is being adopted with
changes, as follows:
(a) Upon receipt from the Commissioner of Customs of the information referred to in section 14.6(d), the Secretary of the Treasury
will proceed as promptly as possible to determine tentatively
whether or not the merchandise in question is in fact being, or
is likely to be, sold in the United States or elsewhere at less
than its fair value. As soon as possible the Secretary will •
publish in the Federal Register a Wetiee-ef-tae-teRtative-aeteFmiRatieRl-WRieR-Hlay-ee-pe~eppee-~e-ae "Notice of Tentative Determination,"
will-ee-Jl~eli8aea-iB-tRe-Feaepal-Regi8tel' which will include a
statement of the reasons on which the tentative determination is
based. Interested persons will be given an opportunity to make such
written submissions as they desire, within a period which will be
specified in the notice, with respect to the contemplated action.
Appropriate consid~ration will be given'to any 8~eR new or additional
information or argument submitted.
If any person believes that any
information obtained by the Bureau of Customs in the course of
an antidumping proceeding is inaccurate or that for any other reason
the tentative determination is in error, he may request in writing that the

- 10 -

Secretary of the Treasury afford him an opportunity to present
his views in this regard. Upon receipt of such a request the
Secretary will notify the person who supplied tae ~ information, the accuracy of which is questioned and such other
person or persons, if any, as he in his discretion may deem to
be appropriate. If the Secretary is satisfied that the
circumstances so warrant an opportunity will be afforded by the
Secretary or his delegate for 'Beta all such persons to .'1ppear,
through th~ir counselor in person, accompanied by counsel
if they so desire, to make known their respective points of
view and to supply such further information or argument .'1S
may be of assistance in leading to a conclusion as to the
accuracy of the information in question. The Secretary or his
delegate may at any time, upon appropriate notice, Fe~~eAt
tas.t_iRfeP'lRs.tieR-eF-s.FgWlReRt-'Be-8lipplie9.-eFs.lly-te-R~H!-B.'f-AB.Y
8liea-peF8eR-eF-peF8eR8-s.8-ae-iR-R~8-9.~8epeti9R-H!s.y-~~eH!-~9-'Be

s.ppFepFis.te invite any such person or persons as he in his
discretion may deem to be appropriate to supply him orally with
information or argument. As soon as possible thereafter, the
Secretary will make a final determinationY--If-tRe-9.et~FH!~RatieR
i8-affiFmativer-tae-ee8petaFY-w~ll-a9.vi8e-tae-~Rit~H-~tRtA8-~MF~~f

geJI!HI.i88ieR-s.889F9.iRgly.. ,except that the Secretury m~.lylefe i'
making an affirmative determination of sales below fair
value during the pendency of any other antidumping procr;crUng
which relates to the same class or kind of merchandise Lmportecl
from another foreign country. The Secretary will defer making
an affirmative determination only if he is satisfied th8t
deferral is appropriate under all of the circumstances.
Circumstances which the Secretary will take into consideration
will include the dates on which information relatinG to the
various antidumping proceedings came to his attention, the
volume of sales involved in each proceeding, elements of
hardship, if any, and probable extent of delay which deferral
would entail. No determination that sales are not below fair
value will be deferred because of this provision. Whenever
the Secretary makes a determination of sales at less than
fair value he will so advise the United States Tariff Commissicn.
(15) The proposed amendment of section 14.9(a) is being adopted
without change, as follows:
Section 14.9

Action by the appraiser.

(a) Upon receipt of advice from the Commissioner of
Customs pursuant to section 14.6(e) if the Commissioner's
"Wi thholding of Appraisement Notice {, shall specify that

- 11 -

the proper basis of comparison for fair value purposeG
is exporter's sales price or if that notice does
not specify the appropriate basis of comparison for
fair value purposes, each appraiser shall withhold
appraisement as to such merchandise entered, or HithdrClwn
from warehouse, for consumption, on any date nfter
the 120th day before the question of dumping wac
raised by or presented to the Secretary of the Treasury
or his delegate. If the Commissioner's '~ithholding
of Appraisement Notice," including any supplementary
notice, shall specify that the proper basis of comparison
for fair value purposes is purchase price, the appraiser
shall withhold appraisement as to such merchandise
entered or withdrawn from warehouse for consumption nfter
the date of publication of the '~ithholding of Appraisement Notice." Each appraiser shall notify the collector
and importer immediately of each lot of merchandise
with respect to which appraisement is so withheld.
Upon advice of a finding made in accordance with
section l4.8(b), the appraiser shall give immediate
notice thereof to the collector and the importer when
any shipment subject thereto is imported after Ule
date of the finding and information is not on hand
for completion of appraisement of such shipment. Cu,~ :.Cf[;j
Form 6459 shall be used to notify the collectu}"ll J d
importer whenever appraisement is withheld lUlde r' tld"
paragraph.
(16) The proposed amendment of section l4.9(f) is being Cldopted
with changes, as follows:
Section l4.9(f) In calculating purchase price or exporter's
sales price, as the case may be, there shall be deducted
the amount of any special dumping duties which are, or
will be, paid by the manufacturer, producer, seller, or
exporter, or which are, or will be, refunded to the importer
by the manufacturer, producer, seller, or exporter, either
directly or indirectly, but a warranty of nonapplicability
of dumping duties granted to an importer with respect to
merchandise which is
purchased, or agreed to be
purchased, before publication of a "Withholding of Appraisement Notice" with respect to such merchandise and (2) exported before a determination of sales below fair value is
made will not be regarded as affecting purchase price or
exporter's sales price.

i!l

- 12 (17) The proposed effective date provisions are substantially
unchanged except for a thirty-day delay provision to allow the
public to become acquainted with them. As proposed, they had
read as follows:
"It is contemplated that if the proposed amendments are adopted
they will become effective, but not retroactively, on the date
of their adoption. Section l4.6a and the amendments of sections
14.7(b)(1), l4.7(b)(3), and 14.9(a) will not be effective with
respect to antidumping proceedings in connection with which the
question of dumping was raised or presented for the purposes
of section 201(b) and 202(a) of the Antidumping Act, 1921, as
amended (19 U.S.C. 160(b) and l6l(a» before the date of the
adoption of the amendments."
As issued, the effective date provisions read as follows:
"The amendments shall become effective, but not retroactively,
30 days after the date of their publication in the Federal
Register. However section l4.6a and the amendments to
sections 14.7(b)(1), 14.7(b)(3), and l4.9(a) shall not be
effective with respect to antidumping proceedings in connection
with which the question of dumping was raised or presented
for the purposes of sections 201(b) and 202(a) of the Antidumping Act, 1921, as amended (19 U.S.C. l60(b) and 16l(a»,
before the 30th day following the date of publication of the
amendments in the Federal Register."
(18) Examples 4 and 5, set forth in footnote 15 appended to
section 14.7(a) are being revised to reflect changes brought about
by the new amendments. No change in the Examples was stated as
being contemplated in the Federal Register Notice of April 23
because it was deemed unnecessary to give notice in this regard.
The Examples do not themselves constitute changes in the "Regulations.
They merely illustrate certain effects of the Regulations, and
require change as the Regulations change. Examples 4 and 5, as
they will be revised, will read as follows:
Example 4
A foreign producer makes all of his sales, other than those to
the United States, for consumption in the country of exportation.
The majority of the merchandise thus sold by him is sold in
50-ton lots at list prices, net. However, a discount of
5 percent is granted on sales of more than 500 tons, and is

- 13 t'n::ely available to those who purchase in the ordinary course
of trade. During the six months preceding the date when the
question of dumping was raised, the producer made sales of
more than 500 tons each with respect to 15 percent of such
or similar merchandise which he sold in the home market. Sales
for exportation to the United States are at list prices less
5 percent and have been in quantities of over 500 tons. The
5 percent will not be allowed as a quantity discount because
les;, than 20 percent of such or similar merchandise was sold
in the home market in quantities to which such discount was
applicable, unless the 5 percent discount can be justified by
cost savings. Cost savings can also be used to justify a
quantity discount where there were no sales in the home market
in quantities sufficient to warrant the granting of the 5 percent
discount, and no offers because there is no potential market
for such quantities.
In determining whether a discount has been given the presence
or absence of a published price list reflecting such a discount
is not controlling. In certain lines of trade price lists are
not commonly published and in others although commonly published
they are not commonly adhered to.
The following example also relates to quantity allowances.
Example 5
A f,)reign producer has the following record of sales at or
U[,c,ltt the date of sale or exportation to the United States.
Price per lb.
for Sales in
Units of 100 lbs.
and 1,000 lbs.
$.85 ( 100 lbs.)
$.80 (1,000 lbs.)

Sales for
Consumption
in Country of
Exportation
200,000 lbs.
20,000 lbs.

Sales
to the
United States
-0100,000 1bs.

Although the lower price in the home market appears to obtain for
quantities the same as those sold for exportation to the United
States at the same price, the quantity sold for home consumption 3t
the lower price is less than 20 percent of the quantity sold in the
home market. Accordingly, the price for exportation to the United
States is not justified, unless cost savings can be shown to justify
the lower price. If 44,000 pounds had been sold in the home
market at the $.80 price, the lower price would have been justified
for comparison with the price for exportation to the United State;,.

cc
(T. D.

643.3

)

Procedures under the Antidu.mping Act, 1921, as 8lDencied -Custans Regulations amended
Sections 14.6, 14.1, 14.8, and 14.9 relating to procedures under the
Antidumping Act, amended; new section 14. 6e. relating to disclosure
of information in antidumping proceedings, added
TREASURY DEPAR'lMENT,
OFFICE OF THE Ca.n.rrSSIONER OF CUSTQofS
Washington, D. C.

To Collectors of Custans and Others Concerned:

TITLE 19--CUSTOm DUTIES
CHAPmR I--BUREAU OF CUSTa4S

PART 14--APPRAISEMENT
A notice was published in the Federal Register on December 24,
1963 (28 F.R. 14245), stating that the Treasury Department was review-

ing its regulations (19 CFR 14.6-14.13) under the Antidumping Act of
1921, as amended (19 U.S.C. 16O-113)..

All interested parties were

afforded an opportunity to be beard on January 23, 1964, With regard
to the reguJ.ations.
After consideration of all written submissions received and
oral arguments made at the hearing, a notice of proposed rulemaking
setting forth certain proposed amendments relating to procedures
under the Antidumping Act was published in the Federal Register on
April 23, 1964 (29 F.R. 5414), pursuant to section 4 of the Administrative Procedure Act (5 U.S.C. 1.003) aDd cClllllDent. were invited to
be sul:m1tted.

- 2 Due consideration now having been given to all comments, views,
and other data received, the amendments as set forth below are hereby
adopted.

'!he amendments 8hall becane effective, but not retroactively,

30 days after the date of their publication in the Federal Register.
However, section 14.6& and the amendments to sections 14.1(b)(1),
14.1(b)(3), and 14.9(a) shall not be effective with respect to antidumping proceedings in connection Vith which the question of dumping
va8 raised or presented for the purposes of sections 201(b) and 202(a)

or the Antidumping Act, 1921., a8 amended (19 U.S.C. 160(b)

aDd 161(&»,

before the 30th day following the date or publication of the amendment8
in the Federal Register.
Section 14.6 is amended as follows:
Paragraph (b) is amended to read:
(b) Any person outside the Custans Service who bas information that merchandise is being, or is likely to be, imported
into the United States under such circumstances as to bring
4
it wi thin the purview of the Antidumping Act, 1921., as amended, 1
may communicate such information in writing to the Commissioner
of Custans. Every such camrnmication shall contain or be accanpanied by the following:
(1) A detailed description or sample of the merchandise; the
name of the country fran which it is being, or is likely to be,
imported; the name of the exporter or exporters and producer or
producers, if known; and the ports or probable ports of importation into the United States. If no sample is furnished, the
Bureau of Custans may call upon the person who furnished the
information to furnish samples of the imported and competitive
domestic articles, or either~
(2) Such detailed data as are reasonably available with respect
to values and prices indicating that such merchandise is being,
or is likely to be, 80ld in the United States at less thaD 1ts
fair value, Vi thin the meaning at the Antidumping Act I 1921, &8

- 3 amended, including information as to any differences between the
foreign market value or constructed value and the purchase price
or exporter's sales price which may be accounted for by any difference in taxes, discounts, incidental costs such as those for
packing or fre ight, or other items.

(3) Such information as i8 reasonably available to the person
furnishing the information as to the total value and volume of
domestic production of the merchandise in question.
(4) Such suggestions as the person turnisbing the information

may have as to specific avenues or investigation to be pursued
or questions to be asked in seekiDg pertinent iDtormation.
Paragraph (c) is amended to read:
(c) If any information filed pursuant to paragraph (b) does
not conform With the requirements of that paragraph, the
Commissioner shall return the camnnn1 cation to the person
who submitted it With detailed written advice as to the respects in which it does not conform.
Paragraph (d)(l) is amended to read:
(d)(l) Upon receipt pursuant to paragraph (a) or (b) of this
section of information in proper form, (i) the Commissioner
shall conduct a summary investigation. If he determines that
the information is patently in error or that the merchandise
is not being and is not likely to be imported in more than.
insignificant quantities he shall so advise the person who
submi tted the information and the case shall be closed. OtherWise, the Commissioner shall publish a notice in the Federal
Register that information in proper form has been received
pursuant to paragraph (a) or (b) of this section. This notice,
which may be referred to as the "Antidumping Proceeding Notice,"
will specify whether the information relates to all shipments
of the merchandise in question from an exporting country, or
only to shipments by certain persons or film s; in the latter
case~ only the names of such persons and firms will be specified. The notice shall also specify the: date on which information in proper form was received and that date shall be the
date on which the question of dumping was raised or presented
for purposes of sections 201(b) and 202(a) of the Antidumping
Act, 1921, as amended (19 U.S.C. 160(b) and 161(a». The
notice shall also contain a summary' ot the information 1"8ceivede U a person wtside the Custans Service raised or

- 4presented the question of dumping, his name shall be included
in the notice unless a determination under section l4.6a of
these regulations requires that his name not be disclosed.
(ii) The Commissioner shall thereupon proceed promptly to
decide whether or not reasonable grounds exist to believe or
suspect that the merchandise is being, or likely to be, sold
at less than its foreign market value (or, in the absence of
such value, than its constructed value). To assist him in
making this decision the Commissioner, in his discretion,
may conduct a brief preliminary investigation into such mattera,
in addition to the invoice or other papers or information presented to him, as be may deem necessary.
Paragraph (e) is amended to read:
(e) If the Commissioner determines pursuant to paragraph
(d)(l)(ii) of this section, or in the course of an investigation under paragraph (d)(3)(i) of this section, that there
are reasonable grounds to believe or suspect that any merchandise is being, or is likely to be, sold at less than its
foreign market value (or, in the absence of such value, than
its constructed value) under the Antidumping Act, he shall
publish notice of that fact in the Federal Register, furnishing an adequate description of the merchandise, the name of
each country of exportation, and the date of the receipt of
the information in proper form, and shall advise all appraisers
of his action. This notice may be referred to as the "Withholding of Appraisement Notice." If the belief or suspicion
relates only to certain shippers or producers, the notice shall
specifY that this is the case and that the investigation is
limited to the transactions of such shippers or producers.
The notice shall also specifY whether the appropriate basis
of comparison for fair value purposes is purchase price or
exporter's sales price if sufficient information is availahle to 60 state; otherwtse a supplementary notice w1-1l be
rublished 1-n the Federal Register as soon as possible which
will sl>ecif'y which of such prices is the a:;>propriate basis
of comparison for fair value purpoRes. Upon receipt of such
adVice, the appraisers shall proceed to withhold appraisement
in accordance with the pertinent prOvisions of section 14.9.
(Secs. 201, 407, 42 stat. 11, as amended, 18; 19 U.S.C. 160,

173. )

Part 14 is amended by deleting present footnote 14; by redesignating present footnote 14& as footnote 14.

Part 14 is amended further by adding a

DeW

section designated

14.6& reading as follows:
14.00 Disclosure of information in antidumping proceedings.-(a) Information generally available. In general, all information, but not necessarily all document., obtaiced by the
Treasury Department, including the Bureau of CUstoms, in connection with any antidumping proceeding will be available for
inspection or copying by any interested person, such as the
producer of the merchandise I any importer, exporter I or danestic producer of merchandise Similar to that which is the subject of the proceeding.
With respect to documents prepared
by an officer or employee of the United States, factual material,
as distinguished fram recommendations and evaluations, contained in any such document Will be made available by summary
or otherwise on the same baSis as informat1on contained in
other documents. Attention is directed to section 24.12 relating to fees charged for providing copies of documents.
(b) Requests for confidential treatment of information. Any
person who submits information in connection with an antidumping proceeding may request that such information, or a~
specified part thereof, be held confidential. Information
covered by such a request shall be set forth on separate
pages from other information; and all such pages shall be
clearly marked "Confidential Treatment Requested." The Canmissioner of Customs or the Secretary of the Treasury or the
delegate of either Will dete~ine, pursuant to paragraph (c)
of this section, whether such information, or any part thereof,
shall be treated as confidential. It it is so determined, the
information covered by the determination Will not be made
available for inspection or co~ng by any person other than
an officer or employee of the United States Government or a
person who has been specifically authorized to receive it by
the person requesting confidential treatment. If it is determined that information submitted with such a request, or any
part thereof I should not be treated as confidential, or that
summarized or approximated presentations thereof should be
made available for disclosure, the person who has requested
confidential treatment thereof shall be pranptly so advised
and, unless he thereafter agrees that the information, or
any specified part or summary or apprOXimated presentations
thereof I may be disclosed to all interested parties, the
information will not be made available tor disclosure, but
to the extent that it is selt-serving it v1ll be disregarded
tor the purpose ot the determ1Dation a. to sale. below fair
value and DO reliance .ball be placed thereon in thi. connection.

- 6(c) Standards for determinin whether information will be
regarded as confidential.
1 Information Will ordinarily be
considered to be confidential only if' its disclosure would be
of significant canpeti ti ve advantage to a canpeti tor or would
have a Significantly adverse effect upon a person supplying
the information or upon a person from whan he acquired the information. Further, if disclosure of information in specific
terms or with identifying details would be inappropriate under
this standard, the information Will ordinarily be considered
appropriate fOr disclosure in generalized, summary or approximated form, Without identifying details, unless the Canmissioner
of Customs or the Secretary of the Treasury or the delegate of
either determines that even in such generalized, summary or
approximated form, such disclosure would still be of significant
competitive advantage to a canpetitor Or would still have a Significantly adverse effect upon a person supplying the information
or upon a person fran whan he acquired the information. As indicated in (b), however, the decision that information is not
entitled to protection from disclosure in it. origiDal or in
another form Will not lead to its disclosure unless the person
supplying it conaents to such disclosure.
(2) Information Will ordinarily be regarded as appropriate for
disclosure if it
(i) relates to price informatioD;
(ii) relates to claimed freely available price allowances
for quantity purchases; or
(iii) relates to claimed ditterences 1D circumstances of
sale.

(3) Information Will ordinarily be regarded a. confidential
it its disclosure would
(1) disclose business or trade secrets;
(1i) d1sclose production costs;
(i1i) disclose distribution costs, except to the extent
that such costs are accepted as justifying allowances
for quantity or differences in circumstances of sale;
(1v) disclose the names of particular custemers or the
price or prices at which particular sale. were made.
(Sec.

401, 42 Stat. 18; 19 U.S.C. 113.)

Section 14 .1(b) is amended u tollows:

Subparagraph (1) is amended to read:
(1) Quantities. In canparing the purchase price or exporter's
sales price, as the case may be, with such applicable criteria
as sales or otfers, on which a determination of fair value is
to be based, reasonable allowances will be made for difference.
in quantities if it is established to the satisfaction of the
Secretary that the amount of any price differential is wholly
or partly due to such differences. In determining the question
of allowances for differences in quantity, consideration will
be given, among other things, to the practice of the industry
in the country of exportation With respect to affording in the
hane market (or third country markets, where sales, to third
countries are the basis for comparison) discounts for quantity
sales which are freely available to those who purchase in the
ordinary course of trade. Allowances for price discounts based
on sales in large quantities ordinarily will not be made unless
(i) the exporter during the six months prior to the date when
the question of dumping was raised or presented bad been granting quantity discounts of at least the same magnitude With respect
to 20 percent or more of such or similar merchandise which he
sold in the home market (or in third country markets when sales
to third countries are the basis for comparison) and that such
discounts had been freely available to all purchasers, or (ii)
the exporter can demonstrate that the discounts are warranted on
the basiS of savings specifically attributable to the quanti ties
involved.
Subparagraph (3) is amended to read:

(3) Similar merchandise. In comparing the purchase price or
exporter's sales price, as the case may be, with the selling
price in the home market, or for exportation to countries
other than the United States, in the case of similar merchandise described in subdivisions (C), (D), (E), or (F) of section
212(3), Antidumping Act, 1921, as amended (19 U.S.C. l70a.(3»,
due allowance shall be made for differences in the merchandise.
In this regard the Secretary Will be guided primarily by the
effect of such differences upon the market value of the merchandise but, when appropriate, he may also consider differences in
cost of manufacture if it is established to his satisfaction
that the amount of any price differential i8 wholly or partly
due to such differences.
Subparagraph (4) i8 amended to read:

f-S •

(4) Offering price, In the determination ot fair value, otfer.
will be considered in the abeei!ce of suea I but an offer made 111
circumstances in .rb1ch accep~ce i. not rea.cmably to be expected w1ll not be deemed to b4P an ofter.
A new subparagraph (9) is added reading as tollows:

(9) Revision of prices or other ch~ed circumstances. Whenever the Secretary ot' the Treasury is satistied that pranptly
after the cODmlencement of an antidumping investigation either
(i) price revisions have been made which eliminate the likelihood of sales below fair value and that there is no likelihOOl1
of resumption of the prices which prevailed before such reviSion, or (11) sales to the United States of the merchandise
have terminated and will not be reswnedj or whenever the Secretary concludes that there are other changed circumstances on
the basis of Which it may no longer be appropriate to continue
an antidumping investigation, the Secretary shall publish a
notice to this effect in the Federal Register. The notice shall
state the facts relied on by the Secretary in publishing the
notice and that those facts are considered to be evidence that
there are not and are not likely to be sues below fair value.
The notice shall also state that unless persuasive evidence or
argument to the contrary is presented within 30 days the Secretary will determine that there are not and are not likely to be
sales below fair value. (Sec. 407, 42 Stat. 18; 19 U.8.C. 173.)
Part 14 is amended further by amending examples 4 and 5 under
"Examples for Purposes ot Illustration" in tootnote 15 to read:
Example 4. A foreign producer makes all of his sales,
other than those to the United States, for consumption in the
country of exportation. The majority ot the merchandise thus
sold by him is sold in 50 ton lots at list price., net. However,
a discount of 5 percent is granted on sales of more than 500 tons
and is freely available to those who purchase in the ordinary
course of trade. During the six months preceding the date when
the question of dumping was ra.ised, the producer made sales of
more than 500 tons each With respect to 15 percent of such or
Similar merchandise which be sold in the hane market. Sales
for exportation to the United States are at list prices less
5 percent and have been in quantities ot aver 500 tons. 1be
5 percent Will not be allowed aa a quantity discount because
less than 20 percent of such or l1m1lar mercMDdiae va. so14
in the haDe market 1n quant1 tie. to wb1ch .uch cUICount vu
e

(

applicable, unless the 5 percent discount can be justified
by cost savings. Cost savings can also be used to justify
a quantity discount where there were no sales in the hane
market in quantities sufficient to warrant the granting ot
the 5 percent discount, and no offers because there is no
potential market for such quantities.

In determining whether a discount has been given, the
presence or absence of a published price list reflecting
such a discount is not controlling. In certain lines of
trade, price lists are not commonlY published and in others
although camn~ published they are not camnonly adhered to.
The following example also relates to quantity allowance8.
Example 5. A foreign producer has the following record
of sales at or about the date of sale or exportation to the
Uni ted States:
Price per lb.
for Sal~s in
Units of 100 lbs.
and 1,000 lbs.

Sales for
Consumption
in Country of'
Exportation

Sales to
the
Uni ted States

$.85 ( 1001bs.)
$.80 (1,000 lbs.)

200 ,000 lbs.
20,000 lbs.

100 ,000 lbs.

-0-

Although the lower price in the hane market appears to
obtain for quantities the same as those sold for exportation
to the United States at the same price, the quantity sold
for home consumption at the lower price is less than 20 percent
of the quantity sold in the home market. Accordingly, the
price for exportation to the United States is not Justified,
unless cost savings can be shown to justify the lower price.
If 44,000 pounds had been sold in the home market at the $.80
price, the lower price would have been justified for comparison with the price for exportation to the United States.
Section l4.8(a) is amended to read:
(a) Upon receipt from the Camnissioner of Customs of the information referred to in 8ection l4.6(d), the Secretary of
the Treasury will proceed as pranptly as possible to determine tentattvelywhether or not the mercbandi8e in question is in tact

· 10 -

being, or is likely to be) sold in the United states or elsewhere at less than its fair value. As soon as possible the
Secretary will publish in the Federal Register a "Notice of
Tentative Detennination," which will include a statement of
the reasons on which the tentative determination is based.
Interested persons will be given an opportunity to make such
written submissions as they desire" within a period which will
be specified in the notice, with respect to the contemplated
action. Appropriate consideration will be given to any new or
additional information or argument submitted. If any person
believes that any information obtained by the Bureau of Customs
in the course of an antidumping proceeding is inaccurate or
that for any other reason the tentative determination is in
error, he may request in writing that the Secretary of the
Treasury afford him an opportunity to present his views in
this regard. Upon receipt of such a request the Secretary will
notify the person who supplied any information, the accuracy of
which is questioned and such other person or persons, if any, as
he in his discretion may deem to be appropriate. If the Secretary is satisfied that the circumstances so warrant, an opportunity will be afforded by the Secretary or his delegate for all
such persons to appear, through their counselor in person, accompanied by counsel if they so desire, to make known their respective points of view and to supply such further information
or argument as may be of assistance in leading to a conclusion
as to the accuracy of the information in question. The Secretary or his delegate may at any time, upon appropriate notice,
invite any such person or persons as he in his discretion may
deem to be appropriate to supply him orally with information or
argument. As soon as possible thereafter, the Secretary will
make a final determination, except that the Secretary may defer
making an affirmative determination of sales below fair value
during the pendency of any other antidumping proceeding which
relates to the same class or kind of merchandise imported from
another foreign country. The Secretary w~ll defer making an
affirmative determination only if he is satisfied that deferral
is appropriate under all of the circumstances. Circumstances
which the Secretary will take into consideration will include
the dates on which information relating to the various antidumping proceedings came to his attention, the volume of sales
involved in each proceeding, elements of hardship" if any,
and probable extent of delay which deferral would entail. No
determination that sales are not below fair value will be
deferred because of this prOvision. Whenever the Secretary
makes a determination of sales at less than fair value he will
80 advise the United states Tariff Commission.
(Secs. 201, 407, 42 stat. 11" aa &mended, 18; 19 U.S.C. 160,

113.)

, -,

""""

Section 14.9 is amended

6.,ijJ

fof?l.UOW8:

Paragraph (a) is amended to read:
(a) Upon receipt ot advice from. the Camnissioner of Custans
pursuant to section 14.6(e), if the Commissioner's '~ith
holding of Appraisement Notice!! shall specif,y that the proper
basis of comparison for fair value purposes is exporter's
sales price or if that notice does not specify the appropriate basis of comparison for fair value purposes, each
appraiser shall withhold appraisement as to such merchandise
entered, or withdrawn fran warehouse, for consumption, on ~
date after the l20th day before the question of dumping was
raised by or presented to the Secretary of the Treasury or
his delegate. If the Commissioner's "Withholding of Appraisement Notice, II including any supplementary notice, shall
specify that the proper basia of comparison tor fair value
purposes is purchase price, the appraiser shall. Withhold
appraisement as to such merchandise entered, or withdrawn
fran warehouse, for consumption, after the date of publication
of the ''Withholding of Appraisement Notice." Each appraiser
shall notify the collector and importer immediately of each
lot of merchandise with respect to which appraisement is 80
wi thheld. Upon advice of a finding made in accordance with
section l4.8(b), the appraiser shall give immediate notice
thereof to the collector and the importer when any shipment
subject thereto is imported after the date of the finding
and information is not on hand for completion of appraisement
of such shipnent. Customs Form 6459 shall be used to notify
the collector and importer whenever appraisement is withheld
under this paragraph.
Paragraph (f) is amended to read:
(f) In calculating purchase price or exporter's sales price,
as the case may be, there shall be deducted the amount of
any special dumping duties which are, or will be, paid by
the manufacturer, producer, seller, or exporter, or which
are, or will be, refunded to the importer by the manufacturer,
producer, seller, or exporter, either directly or indirectly,
but a warranty of nonapplicability of dumping duties granted
to an imp.orter with respect to merchandise which is (1) purchased, or agreed to be purchased, before publication of a
"Wi thholding of A~raisement Notice" with respect to such
mercbandJ se and (2J exported before a determ:1natiOll ot sales

- 12 below fair value i8 made, rill not be regarded as affecting
purchase price or exporter'. sales price. (Secs. 201, 202,
203, 204, 208, 407, 42 stat. 11, &s amended, 12, 13, 14, 18i
sec. 486, 46 Stat. 725, aa amended; 19 U.S.C. 160, 161, 162,

163, 167, 173, 1486.)

LESmR

•

ActiDa CCIIIIId...... "'ug'...-

NOV251964~
.\801._

lof _~

aec...

- 24 -

OUr tax system

caD

and will make • significaat

bution to the Great Society.

coatr~~

The goals of that Society

depend entirely for their achievement on aD expanding and
prosperous America, with the fruits of that prosperity
spreading to all parts of the land and all oar peopl.
For this wise management of the tax system i8 an indispensible requirement.
These tasks -- and the efforts to seek a concen8US on
the broad steps -- are a challenae to each of the professions represented here today -- the scholars, the lawyers.
and the accountants.
Let us see that we all rightfully earn our place in
that Society through the contributions we make in the y..rs
ahead.

- 23 must approach these innovations with both wisdom and 1.-11ht
to achieve our twofold goals:

One goal is a smoothly

functioning Internal Revenue Service, benefitting from the
techniques of modern management and cost effectivenes.
analysis which the data now permit, and a 8econd goal i8 to
use these new techniques and data to improve our tax system
and to afford a maximum of significant knowledge about our
society.
And so, whether we speak of tax legislation or of tax
administration, we see both problems and opportunitie8 for
progress.
The problems may now seem stubborn and intractable -and yet there is always the challenging thought that if we
only had more knowledge they would yield to solution and
progress.

For knowledge -- and calm discussion and analysis

of the issues -- will make it possible to achieve a concensus as to the changes to be made in the years ahead.
Taxes touch in many ways both sensitive and subtle on
our economy and our society.

For that reason the importaDt

forward steps must rest on a broad concensus.

- 22 day-to-day relationships with the taxpayi0l publie.
I firmly believe that today we stand

Oil

-.&

the tlu:••hold of

very significant changes in tax admiaiatratiOil. the full
outline of which we cannot yet perceive.

But it ia clear

that the new tools being developed in the I.teraal ReveaU8
Service will require new technique. and create new 'robl....
At the same time, they offer really subatantial opportuaiti••
in the form of improved tax administration and potential
accurate information about the tax syatem .- aad indeed about
our economr and our Society.
I refer not only to the aubomatic data processing
procedures for the handlios of the vast quantities of data
and paper that flow into the Service. but also to the automatic legal retrieval machinery of the Chief CouIl•• l·.
Office of the Service that allows for the cODIpreb.sl".
collection of both precedents and current iaauea and ..k••
this information available quickly and .electively.

The••

innovations and the staggering amount of .8t:atliatical data
that they afford require broad scope and aubataatial depta
in the field of tax administration in the year. ahead.

- 21 the conflicting claima of different ,roup' .Dd 01••••• ~f
taxpayers, with the clai. buttres.ed by dlff.soiq theol'ie.
about what and who make the priv.te sec&or tlcak.·
Painstaking care must be e ••rci.ed to lIls,,"'~' tax
reduction is carefully framed to achieve a bet&U tax ",

structure, and that is one of the .h.ll.... iDvolv~d la·
Senator Long's propoaal.
Finally, any consider.tion of tax policy should a t
ignore the vital 8ubj ect of tax admiailtsoatloD.

Tbia 1.

an area which requires cODstant attention and this i.
particularly true today.

The problema of tax polioy and

tax administration are clo••ly related.

Just a.

,h.

Congres. must achieve a fair aDd balanced allocati... oftM
tax burden, ao must tax adminiatratiOll apply ita ••••••rily

limited resources to secure a fair aad
enforcement.

~laac.d

pro.w..

And sound tax policy requires ao.urate .... to-

date .tati.tical information arranged ill a _ _r which will
be moat meaninaful to tho.e who JllUSt interpret· it 1ft dte
search for policy alternative••
Great progress baa been. . .de ill the. vital talk of
improving the Internal Revenue Service, especially in it.

- 20 -

hi. proposal involves an increase in the.t. .da~ddeductlon
l~it

from $1,000 to $2,000 thus

pe~ittiaa

a laraer

~oup

of taxpayers in these brackets to beaalit from this stmpler
approach to tax computation.

(3)

lor taxpayers -uader

$10,000, the proposal incr..ses the miaimYm staadard deduction
from $300 to $400, relieving a number of very low-taco. .
taxpayers from paying any tax at all.
Essentially, as 1 perceive it, the rationale .of ieutor
Long's three-fold proposal lie. in ita •••• rtion that tbe
problems of tax simplification, and indeed of horizootal
equity, are different at different level. of the inca.8 tax
and thus call for different.olution..

Thia flexibility of

solution should be an opportunity for tho.e inter••ted ia
Senator Long's goals to consider clo.ely hi. propo.. laad
see if that proposal, or modifications of it, offer a.path
to the improvement of our income tax structure.
This proposal of Senator Lolli involves a reveau. los.
of about $700 million, almost equally divided amona the
three categories.
The Senator's proposal emphasise. that tax reduction
does not involve Simple, e.sy-going plans writt ..
back of an envelope.

01l

tbe.

The process of tax reduction involve.

- 19 affecting the legitimate inter•• ts of the Uaited
the collection of the revenue..

sa.tee

In addition, the btll.

provide new and more effective rul.. for the collecttoa of
withholding taxes.
'l1tere is one other matter of current
like to mention.

i~rt••c.

I would-

Senator Long of Louisiana, at the clo•• of

the last session of Congress, introduced a bill embodying a
new approach to tax simplification and equitywb1ch b.
desired the tax profession and the Congre.s to study.
Essentially his proposal divides into thre. pare.,
(1)

For taxpayers above $20,000, it offers a .eri•• of

effective rates applied to total incomes under which the
total tax can never exceed SO percent of the taxpayer'.
total income -- indeed the Government'. share caaealy
approach but never reach SO percent.

For this purpo••

income is measured in a simpler and broader f •• hion without
the restrictive effect of the numeroua preferential provisions -- such as personal deductions -- that now operate to
reduce the tax level for those taxpayers that are advanta.ed
by them.

These new rates would be optional, 8. that- DO one' 8

tax would be increased, but many, of course, would fiad their
tax decreased.

(2)

For taxpayers between $10,000 and $20,000.

- 18 Last September, 1 outlined before the Tax Executives
Institute in Montreal our objectives in the are. of international

ta~es.

We will have legislative

rec~ndations

in this area in 1965, relating to the tax treatment of
non-resident aliens drawing income from United State.
sources and to ways of fostering increased foreign investment in United States private securities.

Th.s. recommeft-

dations would draw on the report earlier this year of •
task force on that subject headed by the then Under Secretary
of the Treasury, Henry H. Pow1er.
On the matter of revenue collection, legislation was
recently introduced which merits careful consideration and
action.

Chairman Mills of the House Way. and Meana Couaitt••

and Representative Byrnes -- the ranking Republican on that
Co~ttee

-- have introduced identical bills concerning the

relative priority of Federal tax liens over the interests of
other creditors.

The bills propose a comprehensive reviaion

of the lien provisions presently in the Internal aevenu.
Code, in order to take account of the variety of new
techniques for financing modern business and to facilltate
the use of new security devices without substantially

- 17 -

1 regret that 1 cannot aive you the detail..

The fact

is. however, that the President baa not yet made a fiDal
decision.
1

will point out two aspects of our excise tax 87atem.

First, whatever may be the merits elsewhere of th.ability
to trace one'a ancestry back to a vartt.. period, it i.
certainly no basis for continuing a tax.

Second, the

bigger the excise tax cut, the fairer our tax .yatem

become~

and more you can eliminate arbitrary discrtminatloa.

-moaa

industries and purchasers, the

mo~e

nuisance taxe. people

are relieved of, and the fewer taxes you have ieterf.riDS
in the conduct of private business.
With regard to structural changes in the tax law to be
made during 1965. at present reco_ndatiOlls are ple.a" 1a
two areas, foundations and international tax matt.r••
There will be reco:mruendations cODcerning abu... weier
the laws governing tax-exempt private foundatioaa.

I v.a't

go into those in any detail, except to say that tkey will
deal with the major abuses and problems that exiat in this
area.

- 16 particularly for future expenditure declaiona.

l ..

.ur.

that the President is well aware of all the aOliplexiti••
involved in this proposal, and will take them into accOUDt
before making any decision.
One further word on the future.

The tax reductiaD
~

involved in the Revenue Act of 1964 ...... perma_t

ODe.

There may be times -- thoup the past years were not such
times -- when the fiscal actiOD _y need to be 001, t-.porary to curb an incipient recession (or head off a. iDoipiant
inflationary rise).

Here the taak of fiscal policy

the

tax side is to ensure that GoverDlllllllt can act withproIIIpC1leaa

along a non-controversial path of temporary tax reduction,
leaving to a later period, when rec.aaion cloucla dl..pp._,
the decision as to what the lonser rana- .trateg requi.....
You are all interested, of course, in the tax ncoaaeD-

dations which the President will make to th. Coasrees .ext
year.
'lb. principal one i. the excise tax cut, which ia the

next logical step after the compreheaaive atteatioD SiYeR
to the income tax.

The objective is to reduce, as much ••

possible, the clutter and haphazard aspects of the.e taxe••

- 15 help -- to give a fair hearing to tho•• who will be affected
by tax changes - - and
A

do open minds.

8ure source of controversy arises because the tax

system -- with its endless possibilities of rewards aad
penalties -- 1s always an inviting target for tho••••-iDa
to achieve a particular welfare, busba.s. or other objectiv••
Much of the course of tax debate lies in the c:~1deratiOD

of proposals thus seeking to use the tax syst_ to 801,..
difficulties that far moTe often than not should be aolftCt

tbroup other apPTOaches.

,.ederalmotley eatlbe • • ced

thTOUP unwise tax provi.8iOll8 just as it call be 101ft'
unwise expenditure progralll8.

Frugality i8 a. fully d. . .ded

in a tax system a8 in an expenditure policy.
In that connection, I would point out that the propOhl
to distribute a portion of Federal tax revenue a1D01ll the
States at some time in the future, without atipulatiOtl . .
to how it should be spent, involves some broad policy
siderations.

COIl

A eloser look indicates that this proposal

1\Ot really a change in tax pol iey, but in expenditure policy.

As such, it carries serious implications for ~he future --

- 14 $500 million in revenue-loaiag reforms -- O¥ • total of
$2.2 billion in changes to tmprove the fairness of our tax
structure.
Furthermore, thoae calculations do not iacluc:le either
the investment credit or the depreciatiOl'l

refo~

substantial tax changes which will spur iavestaent

-- CWo
~

year by reducing busine.s tax liabilities by •• eatt.ated
$3 billion.
But although I believe that significant proare •• bu·
been _de in tax reform, we atill have more to do.

Perhap.

a major characteristic of the American approach to taxatloa •
• specially to the income tax, ia & desire for f.tWD••• at
the risk of complexity.

The challenae forthe future i. to

increase .both equity and simplicity •
It is true that controversy surrounds th.aeprob1ems.
But to a considerable deare. controversy flouriah.. heeau••
knowledge of the behavior of the ecODOllly i. elulv.. .M
more knowledge becomes available, it will of tea. pol., the
path to a reasonable solutiOll.

I bave alw.ys belieY. . . . . .

I have found it so in my pre.ent post, that open door. a1.0

- 13 of energy, dedication, or expertise, call bope to ahape _jol'
legislation to its own device..

In order to aucc.ed, a

legislative program requires a broad base of support,
including public support t and of teD support from public
groupe or organizations which have little ia
each other.

C~ft

witb

1 think this is particularly tneia the area

of tax reduction, for which there will be greater opportunity in the future.
With the increased opportuaity for tax redUCltioa . .also the increased opportunity for structural tax reviatoe.
Certainly we have not gOfte •• far •• we
tax reform.

call

1n the ar. of

Unquestioaably. there i. much _re to be

d_.

As the effect of the 1962 and 1964 Beveaue Acts ......
clearly apparent, we can and should take further _jor
steps toward making our illco.e tax structure·' aillpler a1ICI
fairer.
1 would like to poiat out in passiag t bowwar. tha,
those two tax bills contained more than $1.7 hillioaia
revenue-raising reforms.

That total compare. to $600 ·.illioD

for the entire period 1942 - 1962 and $200 mllllo. lor the
period 1953 - 1962.

We can add to the $1.7 bil1i~.DVer

- 12 relatively high tax rat.a.
not an absolute virtue.
d.-nd and inve8tment.

Thoae hiah rat.....owever.

ar-

They tend to reduce both gonsumer
I.sentially, like aay tax., they

restrain the operation of the priyate .ector.

ADd.

private sector operating with vitality aad spurr!_. 04,ltal
formation is a180 an urgent national need.
Theae two national needs -- re.pOftsible Federal .p.diDi
and healthy private enterprise -- must both be fostered.
There are no fixed rules by which we can decide i.
when one or the other needs attention.

~.aoe

the deci.!,.. 40

not involve absolutes but degrees of reliaaee o.

Ofte.pp~..cb

or the other, depending on our loal. and neeels fro. ,,....
year.

Such criteria mean chanainl patterns of

from time to time.

decis~

Finally, the decision. ia uck."..

be balanced not only agaiD8t each other. but .pl..,

1IUlt

~••

of the other area, so it is impossible to simply wrap up
expenditure decisions and then let that result

91.ta~e

policy toward the private sector, or vice versa.
Whichever approach is emphasized, a Dread Ita •• of .....re
is essential for success -- in either tax red..tiaa .,
expenditure programs.

No single special iatere•• r bJ

- 11 i. not Mc.ssary at this tu. to _intaiD price .tability.
The choice between expenditure policy aDCl tax nduotiOD
i. not one of absolutes, but one of delree .Del
S~

1:1111111·

government proar... must increa.e as the eccmc.y

expands. other goverDD8nt programs will contract or taper
off a. needs are _ t or pre.aure. e ••e, and .ome

DeW

proar_

must be started a. our country constantly re-exam.nes and
redefines its goals and objectives.
Two important factors affect expenditure policy.

One

i. budgetary responsibility -- which demand. a fruaal,
watchful control of the dollars spent.

The other i. natiOll&l

responsibility -- which demands that our public Deed. la the
y••rs ahead will have been properly perceived and plau_.
for.

r.deral expenditure., fruaally controlled aDd wi.e1,

spent on the things that must be the concern of eovenaellC
and which eovernaent can best perform, are thus an urlnt
national need.
But tax reduction, properly ti_d and properly applie.,
is also a wise national policy.

the obllaationa of .aden

societi.s, especially tho.e with defen.. burcleu. require

- 10 expanding economy can be -- and are -- crucial decleloaa.
Care is needed to keep a $650 billion economy on a stable,
upward course.

Marginal decisions about the economy can

be crucial decisions -- just as they can be in a plane
moving at 650 miles an hour.
In any case, we can't stand still.

The pressures of

our expanding economy demand that we act one more -- so
that we can continue to grow and indeed thereby make it
necessary to act again.
But fortunately, in an expanding economy, the requirement to act presents a splendid opportunity, for the choice.
to be made are choices among benefits and not among evil ••
Our fiscal policy choices for the utilization of the••
additional revenues are debt retirement, expenditure policy,
and now, as a result of the 1964 breakthrough, tax reduetlon.
Since we are still above the 4 percent unemployment
level and still have unutilized industrial capacity, and
are determined to maintain adequate economic growth, the
choice of debt retirement would be unwise.

Such a choice

- 9 -

means a loss of over $1 billion in corporate profits, over
$4-1/2 billion in personal incomes and over 450,000 jobs.
And these 450,000 jobs are badly needed with a labor force
growing as rapidly as ours is today -- by about S million
since 1959.
Moreover, small movements in our economy have extensive impacts on our public and business attitudes.

Survey.

have indicated that a loss of a half million jobs can make
as many as 20 million people feel that their jobs are
threatened.
Also. many business investment plans geared to a 5
percent rate of expansion will become unprofitable if the
growing markets for which they are designed do not materialize,

that a cutback of business expansion, with all of

its possible snowballing effects, would occur.
Finally, the waste associated with even a small • •UIlt
of idle resources adds up tremendously over time --

.1n~.

1957 we have lost more than $200 billion through ourecQ1lOll1
operating at 1es8 than its full potential.
Clearly, decisions on what to do about the enDuel
revenue increases of $5 billion or more a year in an

- 8 -

This rise in revenue operate. to .10w the eoOtlOlay', '
withdrawing f\Dlds from the private sector and thus redUelua
demand and investment.

The

ee01lomy

will expand 1•••

rapidly, GNP and income will not rise ••
will not increase as much.

fa.e, .ad r..-au.

Indeed, if the drag ia too

heavy the economy can falter and move into rece•• lon ••d
revenue will decline.
These annual increases in revenue are 8ipilia.at, ,but
the sheer size of our economy makes it difficult to keep
them in perspective.

As we have seen, with an economy

expanding at a 5 percent rate revenue. wlll Irow
or more a year.

.5 billion

Despite the aize of a $650 billion ecoaemy,

the handling of these dollars can be vitally tmportCBt"
For instance, suppoae the effect ..erted by the re..val
of $5 or $6 billion from the private sector .low8 down our
growth rate by only one percent, from 5 percent 'to 4 ,.re..t.
This slowdown would reduce total output by $6-1/2 billt...
This slowdown in economic growth means more than
decreased revenues and an increa.e in the deficit -- it

- 7 higher income and profits -- theaaelves the r ••ult of the
tax cut -- you find the

revenue

1088

for the

,.a~

only $4-1/2 billion compared to what it would bav. been if
there had been no tax cut.

(1£ you a8s.... a • •ay

~.t.

hold, that there would ta ve been a rece8.io1I without. tax
cut, that net revenue 10•• become. considerabl, • • ller.)
Actually, in absolute terms, revenue receipts have aot
shown any decline over the period of the tax eut. but taatead
have increased.
The 1964 tax cut is thus not the end of the road -- it
is the beginning of a new road.

It ••parate. the ec08Olli••

of the Fifties from the economics of the Sixtie. -- b.r prev!..
tha t a tax cut can spur economic growth aDd thus , ...chIc.

Dft

tax revenues.
This rise in revenue, at present ecoDOmic level. aad
under pre.ent tax rates, i8 about $5 billion or _r. a ,.ar.
This rise in revenue must be utilized i. 8o.e ,f••h19D
by the Government -- for unles8 it 18 wisely utl1iaed, it

may not even exist to be u.ed.

- 6 -

These are, of course, the kind of problems

11k••

They are the kind of problems that artse from aft economic
growth rate of 5 percent rather than the rate of 2 or 3
percent which characterized the period juat before our
current expansion.
One of these problems, for instance, is how to keep
up

the pace.

One way, and al we have seen, a most effeett••

way, is to cut tax.s again, and that is why the President
has indicated he will seek a reduction in excise taxes.
Re will seek that reduction in 1965, the very,..r
that the largest income tax cut in our history becomes
fully effective for the first time -- a tax cut whlcbwtll
save both individual and corporate taxpayers

$14

billion at 1965 income levels.
'Ibis is what many find hard to understand _. why we
need another tax cut already.
The answer becomes apparent if you look at thefiaure ••
For inatance. during fiscal 1965, which ends ftUt JUne
the income tax cut amounts to $9 billion.

~O,

But Weft you take

into account the increases in tax revenue that result from

- .5 -

restrain inflation, but uaina it -- perbap. for the flr.t
time -- a. a vital and effective force for ecoaome P'OWth.
Finally and mo.t importaat, the .ffeet on the
waa aubstantial.

.COllO.,

Consumer demand ..a i.er....d, inc.ativ••

to iavest were raised, and the econom1 responded ••
expected.

We are now ill the forty-.ixth moath of .the

longe.t and stronge.t economic expansion in our hi.tory,
and few doubt that the tax cut deserve. the credit. f.r·-tb.
health and vigor of this year'. economic

proar....~r.over.

the inveatment incentive measures of 1962, plaDBe. preciaely
for this purpose, have helped to keep the expanai01l .'rot'll
by

their effect on corporate inve.tment.
As a re.ult, the economic decisiona which .uet aow b.

made are not the result of chronic problems nor of the failure
of our policies.

'l1ley are instead the product of our ..ce••••

For the sweeping DAture of the tax cut, both In aiae
and in the boldn•• s of the conc.pt it.elf -. cuttia, ta...
with a budget d.ficit as a means to move closer to our
economic potential and a balanced budget -- baa ia tun
u. up againat some new, but not unforeseen, prohl ....

...,t

- 4 In addition, during 1962, we were alread, worki_, ••
the next step -- the over-all reduction in rate. to,eth••
with the substantial structural change. which _de up
Revenue Act of 1964.

~he

Our studies indicated that DOt oa1,

were high marginal tax rates limiting the iftceativ.. for
vital private investment, but that the whole effect of the
high wartime tax rates waa to act as a brake

OD ec~c

growth.
This effect of the high tax rates explained. in lood.
part, our experience of the Fiftias, in which the tax
structure moved too quickly to drain off coaau.er d...ad
and investment funds, stifling expaDBion bafore full employ.
ment could be reached.
We reasoned that the best way to move clo.er to full
employment was to lower the tax structure and that 1, Juat
what was done.

lbat was the Revenue Act of 1964.

The effect on tax rates was aubatal1tial _. 20 pea-...~
reduction for individuals and. together with the

196a~bu.i.

ness tax chanlea. 20 percent for corporations.
The effect on tax policy was also sub8taQt·i.l,~_kil'll
the tax structure not merely a tool to raise revenue and

- 3 -

changes which had their effects diminished or

masftift.d~.a

a result of poor coordination with fiscal polte,.
During all this time, the tax system ... eon.ider.d
capable of acting as a weapon to mitigate ree •• sion.

on1,

through the cushioning effect of the so-called aatOdatie,
built-in stabilizers.

This stabilizing effect re.ulted

from the fact that the income tax draws les8 and le.. Out
of the economy when it turns down and thus cushions the
downswing.
This traditional but limited outlook viewed our tax
structure as solely a defeasive weapon against race.sions -going into effect only after the reeeasioDs were under way.
The breakthrough in fiscal policy came in using tax
policy as an offensive weapon to keep the economy 1IlOViq
upward and to stop reeessions before they started.
The first step along this new road was taken in 1962,
with the passage of the Revenue Act of 1962.

This Act

provided a 7 percent investment credit to spur new investment and aceelerate economic growth.

During 1963 alone that

credit, together with the sweeping liberalization of

dePre-

ciation carried out by the Treasury in 1962, reduced &usin•••
tax liabilities by $2.5 billion.

- 2 And chief among these, of cour•• , i. the dr...cte
breakthroulh in fiscal policy repre •••t.d hy the tax chana••
climaxed by the 1964 Rev.nue Act.
That breakthrough followed a proloaa.d period in wbieh
economic policymakers strugaled un.ucees.fu1lr with ....t.ry
and fi.ca1 tools. Despite repeated tinkeri••• they qeyer
seemed to be able to hit the risbt policy mix.

1. 1.s. than

8 y..rs, we had three rec.ssions.
In 1954, taxes were reduced sharply, but the Dain
empha.la

w.,

011

termination of Xorean warti_ rate••••

result of the drop in red.ral spending aft.r

theXo~...

war.

As a result, we nev.r learned the fi.eal 1.SaoD we could .....
and should -- have learned from the 8peed with which this
tax cut reversed the rece88ion that bad re.ulted fro.
previou8 spendillg cuts.
Aaain in 1958, although many voic•• were ra1sed 10
favor of a tax cut,

action was tak.n bY.,the Ad.1Ii"i.tra-

tioo and another opportunity was lost.
The ov.r-all pattern was one of expead1tur. 1DOr.....
which came after the time they were most n ••ded and . . .aa:ry

TREASURY DEPARTMENT
Washington
FOR SIMULTANEOUS RELEASE IN BOSTON
AND WASHINGTON UPON DELIVERY
BY THE HONORABLE STANLEY S. SURREY
ASSl STANT SECRITARY or THI TRlASUllY
BEFORE THE FEDERAL TAX INSTITUTE OF NEW ENGLAND
REMARKS

BOSTO., MASSACHUSI'rl'S
SATURDAY, DECEMBER 5, 1964, 12 :30 P.M., EST

During the next few weeka the President will besla
making final decisions which will start our nation on the
journey toward what he has called "The Great: Society".
No decisions will be more vital in our progr••• to..rd

that goal than those in the area of economic policy.
For those decision. will affect the amount of r ••ouree.
which will be available, both to government and to the
private sector of the economy, and the a"aitAbilityof tho••
r.aources will determine the success of the entire enterprise.
The cheices he will be making in the comina web aad
months as his programs take shape would be far more, limited
if it were not for the success of our economic pollei.. ef
the recent paat.

TREASURY DEPARTMENT
Washington
FOR SIMULTANEOUS RELEASE IN BOSTON
AND WASHINGTON UPON DELIVERY

REMARKS BY THE HONORABLE STANLEY S. SURREY
ASSISTANT SECRETARY OF THE TREASURY
BEFORE THE FEDERAL TAX INSTITUTE OF NEW ENGLAND
BOSTON, MASSACHUSETTS
SATURDAY, DECEMBER 5, 1964, 12:30 P.M., EST
During the next few weeks the President will begin making
final decisions which will start our nation on the journey toward
what he has called "The Great Society".
No decisions will be more vital in our
than those in the area of economic policy.

prog~ess

toward that goal

For those decisions will affect the amount of resources which
will be available, both to governm2nt and to the private sector of
the economy, and the availability of those resources will determine
the success of the entire enterprise.
T~e choices he will be making in the coming weeks and months
as his programs take shape would be far more limited if it were not
for the success of our eoonomic policies of the recent past.

And chief among these, of course, is the dramatic breakthrough
in fiscal policy represented by the tax changes climaxed by the 1964
Revenue Ac t .
That breakthrough followed a prolonged period in which economic
policymakers struggled unsuccessfully with monetary and fiscal tools.
Despite repeated tinkering, they never seemed to be able to hit the
right policy mix. In less than 8 years, we had three recessions.
In 1954, taxes were reduced sharply, but the main emphasis was
on termination of Korean wartime rates as a result of the drop in
Federal spending after the Korean War. As a result, we never
learned the fiscal lesson we could -- and should -- have learned
from the speed with which this tax cut reversed the recession that
had resulted from previous spending cuts.
Again in 1958, although many voices were raised in favor of a
tax cut, no action was taken by the Administration and another
opportunity was lost.

D-1427

- 2 The over-all pattern was one of expenditure increases which
came after the time they were most needed and monetary changes
which had their effects diminished or magnified as a result of poor
coordination with fiscal policy.
During all this time, the tax system was considered capable of
acting as a weapon to mitigate recessions only through the cushioning
effect of the so-called automatic, built-in stabilizers. This
stabilizing effect resulted from the fact that the income tax draws
less and less out of the economy when it turns down and thus
cushions the downswing.
This traditional but limited outlook viewed our tax structure
as solely a defensive weapon against recessions -- going into effect
only after the recessions were under way.
The breakthrough in fiscal policy came in using tax policy as an
offensive weapon to keep the economy moving upward and to stop
recessions before they started.
The first step along this new road was taken in 1962, with the
passage of the Revenue Act of 1962. This Act provided a 7 percent
investment credit to spur new investment and accelerate economic
growth. During 1963 alone that credit, together with the sweeping
liberalization of depreciation carried out by the Treasury in 1962,
reduceq business tax liabilities by $2.5 billion.
In addition, during 1962, we were already working on the next
step
the over-all reduction in rates together with the substantial
structural changes which made up the Revenue Act of 1964. Our
studies indicated that not only were high marginal tax rates limiting
the incentives for vital private investment, but that the whole
effect of the high wartime tax rates was to act as a brake on
economic growth.
This effect of the high tax rates explained, in good part, our
experience of the Fifties, in which the tax structure moved too
quickly to drain off consumer demand and investment funds, stifling
expansion before full employment could be reached.
We reasoned that the best way to move closer to full employment
Nas to lower the tax structure and that is just what was done.
rhat was the Revenue Act of 1964.
The effect on tax rates was substantial -- 20 percent reduction
for individuals and, together with the 1962 business tax changes,
20 percent for corporations.

- 3 -

The effect on tax policy was also substantial, making the tax
structure not merely a tool to raise revenue and restrain inflation,
but using it -- perhaps for the first time -- as a vital and
effective force for economic growth.
Finally and most important, the effect on the economy was
substantial. Consumer demand was increased, incentives to invest
were raised, and the economy responded as expected. We are now in
the forty-sixth month of the longest and strongest economic expansion
in our history, and few doubt that the tax cut deserves the credit
for the health and vigor of this year's economic progress. Moreover,
the investment incentive measures of 1962, planned precisely for this
purpose, have helped to keep the expansion strong by their effect
on corporate investment.
As a result, the economic decisions which must now be made are
not the result of chronic problems nor of the failure of our
policies. They are instead the product of our success.
For the sweeping nature of the tax cut, both in size and in
the boldness of the concept itself -- cutting taxes with a budget
deficit as a means to move closer to our economic potential and a
balanced budget -- has in turn swept us up against some new,
but not unforeseen, problems.
These are, of course, the kind of problems we like. They are
the kind of problems that arise from an economic growth rate of
5 percent rather than the rate of 2 or 3 percent which characterized
the period just before our current expansion.
One of these problems, for instance, is how to keep up the pace.
One way, and as we have seen, a most effective way, is to cut taxes
again, and that is why the President has indicated he will seek a
reduction in excise taxes.
He will seek that reduction in 1965, the very year that the largest
income tax cut in our history becomes fully effective for the first
time -- a tax cut which will save both individual and corporate
taxpayers about $14 billion at 1965 income levels.
This is what many find hard to understand -- why we need another
tax cut already.
The answer becomes apparent if you look at the figures. For
instance, during fiscal 1965, which ends next June 30, the income tax
cut amounts to $9 billion. But when you take into account the
increases in tax revenue that result from higher income and profits

- 4 themselves the result of the tax cut -- you fine the net revenue
loss for the year is only $4-1/2 billion compared to what it would
have been if there had been no tax cut. (If you assume, as many
economists hold, that there would have been a recession' without a
tax cut, that net revenue loss becomes considerably smaller.)
Actually, in absolute terms, revenue receipts have not shown
any decline over the period of the tax cut, but instead have increased.
The 1964 tax cut is thus not the end of the road -- it is the
beginning of a new road. It separates the economics of the Fifties
from the economics of the Sixties -- by proving that a tax cut can
spur economic growth and thus produce new tax revenues.
This rise in revenue, at present economic levels and under
present tax rates, is about $5 billion or more a year.
This rise in revenue must be u~ilized in some fashion by the
Government -- for unless it is wisely utilized, it may not even
exist to be used.
This rise in revenue operates to slow the -economy, withdrawing
funds from the private sector and thus reducing demand and investment.
The economy will expand less rapidly, GNP and income will not rise
as fast, and revenue will not increase as much. Indeed, if the drag
is too heavy the economy can falter and move into recession and
revenue will decline.
These annual increases in revenue are significant, but the sheer
size of our economy makes it difficult to keep them in perspective.
As we have seen, with an economy expanding at a 5 percent rate
revenues will grow $5 billion or more a year. Despite the size of
a $650 billion economy, the handling of these dollars can be
vitally important.
For instance, suppose the effect exerted by the removal of

$5 or $6 billion from the private sector slows down our growth rate
by only one percent, from 5 percent to 4 percent.
would reduce total output by $6-1/2 billion.

This slowdown

This slowdown in economic growth means more than decreased
revenues and an increase in the deficit -- it means a loss of over
$1 billion in corporate profits, over $4-1/2 billion in personal
incomes and over 450,000 jobso And these 450,000 jobs are badly
needed with a labor force growing as rapidly as ours is today -by about 5 million since 1959.

- 5 QL,

Moreover, small movements in our economy have extensive impacts
on our public and business attitudes. Surveys have indicated that
a loss of a half million jobs can make as many as 20 million people
feel that their jobs are threatened.
Also, many business investment plans geared to a 5 percent rate
of expansion will become unprofitable if the growing markets for
which they are designed do not materialize, so that a cutback of
business expansion, with all of its possible snowballing effect,
would occur.
Finally, the waste associated with even a small amount of
idle resources adds up tremendously over time -- since 1957 we have
lost more than $200 billion through our economy operating at less
than its full potential.
Clearly, decisions on what to do about the annual revenue
increases of $5 billion or more a year in an expanding economy can
be -- and are -- crucial decisions. Care is needed to keep a
$650 billion economy on a stable, upward course. Marginal decisions
about the economy can be crucial decisions -- just as they can be
in a plane moving at 650 miles an hour.
In any case, we can't stand still. The pressures of our
expanding economy demand that we act once more -- so that we can
contin~e to grow and indeed thereby make it necessary to act again.
But fortunately, in an expanding economy, the requirement to
~ct presents a splendid opportunity, for the choices to be made are
~hoices among benefits and not among evils.
Our fiscal policy choices for the utilization of these additional
revenues are debt retirement, expendi ture policy, and now, as a
result of the 1964 breakthrough, tax reduction.
Since we are still above the 4 percent unemployment level and
3till have unutilized industrial capacity, and are determined to
naintain adequate economic growth, the choice of debt retirement
lould be unwise. Such a choice is not necessary at this time to
naintain price stability.

-6The choice between expenditure policy and tax reduction is not
Ie of absolutes, but one of degree and timing. Some government
~ograms must increase as the economy expands, other government
~ograms will con trac t or taper
off as needs are me t or pressures
lse, and some new programs must be started as our country con~ntly re-examines and redefines its goals and objectives.
Two important factors affect expenditure policy. One is budgetary
!sponsibility -- which demands a frugal, watchful control of the
>llars spent. The other is national responsibility -- which demands
lat our public needs in the years ahead will have been properly
!rceived and planned for. Federal expenditures, frugally controlled
ld wisely spent on the things that must be the concern of Govern!nt and which Government can best perform, are thus an urgent national
!ed.
But tax reduction, properly timed and properly applied, is
so a wise national policy. The obligations of modern societies,
pecially those with defense burdens, require relatively high tax
tes. Those high rates, however, are not an absolute virtue.
ey tend to reduce both consumer demand and investment. Essentially,
ke any tax, they restrain the operation of the private sector.
d a private sector operating with vitality and spurring capital
rmation is also an urgent national need.
These two national needs -- responsible Federal spending and
althy -private enterprise -- must both be fostered. There are no
xed rules by which we can decide in advance when one or the other
eds attention. The decisions do not involve absolutes but degrees
reliance and one approach or the other, depending on our goals
d needs from year to year. Such criteria mean changing patterns of
cision from time to time. Finally, the decisions in each area
st be balanced not only against each other, but against those
the other area, so it is impossible to simply wrap up expenditure
:isions and then let that result dictate policy toward the private
:tor, or vice versa.
Whichever approach is emphasized, a broad base of support is
3ential for success -- in either tax reduction or expenditure
)grams. No single special interest, by dint of energy, dedication,
expertise, can hope to shape major legislation to its own devices.
order to succeed, a legislative program requires a broad base
support, including public support, and often support from public
)Ups or organizations which have little in common with each other.

-7I think this is particularly true in the area of tax reduction, for
which there will be greater opportunity in the future.
With the increased opportunity for tax reduction comes also
the increased opportunity for structural tax revision. Certainly
we have not gone as far as we can in the area of tax reform.
Unques tionab ly, there is much more to be done. As the e f fec t of
the 1962 and 196L~ Revenue Acts become clearly apparent, we can and
should take further major steps toward making our income tax structure
simpler and fairer.
I would like to point out in passing, however, that those two
tax bills contained more than $1.7 billion in revenue-raising reforms.
That total compares to $600 million for the entire period 1942 - 1962
and $200 million for the period 1953 - 1962. We can add to the $1.7
billion over $500 million in revenue-losing reforms -- or a total of
$2.2 billion in changes to improve the fairness of our tax structure.
Furthermore, those calculations do not include either the
investment credit or the depreciation reforms -- two substantial
tax changes which will spur investment next year by reducing business
tax liabilities by an estimated $3 billion.
But although I believe that significant progress has been
made in tax reform, we still have more to do. Perhaps a major
characteristic of the American approach to taxation, especially to
the income tax, is a desire for fairness at the risk of complexity.
The challenge for the future is to increase both equity and simplicity.
It is true that controversy surrounds these problems. But to
a considerable degree controversy flourishes because knowledge of
the behavior of the economy is elusive. As more knowledge becomes
available, it will often point the path to a reasonable solution.
I have always believed, and I have found it so in my present post,
that open doors also help -- to give a fair hearing to those who
will be affected by tax changes -- and so do open minds.
A sure source of controversy arises because the tax system -with its endless possibilities of rewards and penalties -- is always
an inviting target for those seeking to achieve a particular welfare,
business or other objective. Much of the course of tax debate lies
in the consideration of proposals thus seeking to use the tax system
to solve difficulties that far more often than not should be solved
through other approaches. Federal money can be wasted through unwise
tax provisions just as it can be lost through unwise expenditure programs. Frugality is as fully demanded in a tax system as in an expenditure policy.

-8-

In that connection, I would point out that the proposal to
distribute a portion of Federal tax revenue among the States at some
time in the future, without stipulation as to how it should be
spent, involves some broad policy considerations. A closer look
indicates that this proposal is not really a change in lax policy,
but in expenditure policy. As such, it carries serious implications
for the future -- particularly for future expenditure decisions. I
am sure that the President is wll aware of all the complexities involved in this proposal, and will take them into accoun t be fore
making any dec is ion.
One further word on the future. The tax reduction involved in
the Revenue Act of 1964 is a permanent one. There may be limes -though the past years were not such times -- when the fiscal action
may need to be only temporary to curb an inc ipien t recess ion (or
head off an incipient inflationary rise). Here the task of fiscal
policy on the tax side is to ensure that Government can acl with
promptness along a non-controversial path of temporary tax reduction,
leaving to a Ie ter period, when recess ion clouds disappear, the
decision as to what the longer range strategy requires.
You are all interested, of course, in the tax recommendations
which the President will make to the Congress next year.
The principal one is the excise tax cut, which is the next
logical step after the comprehensive attention given to the income
tax. The objective is to reduce, as much as possible, the clutter
and haphazard aspects of these taxes.
I regret that I cannot give you the details. The fact is,
however, that the President has not yet made a final decision.
I will point out two aspects of our excise tax system. First,
whatever may be the merits elsewhere of the ability to trace one's
ancestry back to a wartime period, it is certainly no basis for
continuing a tax. Second, the bigger the excise tax cut, the fairer
our tax system becomes, and more you can eliminate arbitrary discriminations among industries and purchasers, the more nuisance
taxes people are relieved of, and the fewer taxes you have interfering in the conduct of private business.
With regard to structural changes in the tax law to be made
during 1965, at present recommendations are planned in two areas,
found a tions and in terna tiona 1 tax rna tters .

-9There will be recommendations concerning abuses under the
laws governing tax-exempt private foundations. I won't go into those
in any detail, except to say that they will deal with the major
abuses and problems that exist in this area.
Last September, I outlined before the Tax Executives Institute
in Montreal our objectives in the area of international taxes. We
will have legislative recommendations in this area in 1965, relating
to the tax treatment of non-resident aliens drawing income from
United States sources and to ways of fostering increased foreign
investment in United States private securities. These recommendations would draw on the report earlier this year of a task force
on that subject headed by the then Under Secretary of the Treasury,
Henry H. Fowler.
On the matter of revenue collection, legislation was recently
introduced which merits careful consideration and action. Chairman
Mills of the House Ways and Means Committee and Representative
Byrnes -- the ranking Republican on that Committee -- have introduced identical bills concerning the relative priority of Federal
tax liens over the interests of other creditors. The bills propose a comprehensive revision of the lien provisions presently in
the Internal Revenue Code, in order to take account of the variety
of new techniques for financing modern business and to facilitate
the use of new security devices without substantially affecting
the legitimate interests of the United States in the collection of
the revenues. In addition, the bills provide new and more effective
rules for the collection of withholding taxes.
There is one other matter of current importance I would like
to mention. Senator Long of Louisiana, at the close of the last
session of Congress, introduced a bill embodying a new approach
to tax simplification and equity which he desired the tax profession
and the Congress to study.
Essentially his proposal divides into three parts:
(1) For
taxpayers above $20,000, it offers a series of effective rates applied
to total incomes under which the total tax can never exceed 50 per
cent of the taxpayer's total income -- indeed the Government's
share can only approach but never reach 50 percent. For this purpose income is measured in a simpler and broader fashion without
the restrictive effect of the numerous preferential provisions -such as personal deductions -- that now operate to reduce the tax
level for those taxpayers that are advantag~ by them. These new
rates would be optional, so that no one's tax would be increased,
but many, of course, would find their tax decreased. (2) For
taxpayers between $10,000 and $20,000, his proposal involves an increase in the standard deduction limit from $1,000 to $2,000 thus

-10~rmitting

a larger group of taxpayers in these brackets to benefit
from this simpler approach to tax computation. (3) For taxpayers
Inder $10,000, the proposal increases the minimum standard deduction
from $300 to $400, relieving a number of very low-income taxpayers
from paying any tax a tall.
Essentially, as I perceive it, the rationale of Senator Long's
proposal lies in its assertion thit the problems of
:ax simplification, and indeed of horizontal equity, are different
It different levels of the income tax and thus call for different
lolutions. This flexibility of solution should be an opportunity
:or those interested in Senator Long's goals to consider closely his
lroposal and see if that proposal, or modifications of it, offer a
lath to the improvement of our income tax structure.
~ree-fold

This proposal of Senator Long
involves a revenue loss of
.bout $700 million, almost equally divided among the three cate;ories.
The Senator's proposal emphasizes that tax reduction does
ot involve simple, easy-going plans written on the back of an
nvelope. The process of tax reduction involves the conflicting
laims of different groups and classes of taxpayers, with the
1aims buttressed by differing theories about what and who make
he private sector tick.
Painstaking care must be exercised to insure that tax reuction is carefully framed to achieve a better tax structure, and
hat is one of the challenges involved in Senator Long's propos~.
Finally, any consideration of tax policy should not ignore
he vital subject of tax administration. This is an area which reuires constant attention and this is particularly true today. The
rob1ems of tax policy and tax administration are closely related.
ust as the Congress must achieve a fair and balanced allocation of
he tax burden, so must tax administration apply its necessarily
imited resources to secure a fair and balanced program of enforceent. And sound tax policy requires accurate up-to-date statisti11 information arranged in a manner which will be most meaningful
) those who must interpret it in the search for policy alternatives.
Great progress has been made in the vital task of improving
Internal Revenue Service, especially in its day-to-day relaLonships with the taxpaying public. But I firmly believe that
)day we stand on the threshold of very significant changes in tax
iministration, the full outline of which we cannot yet perceive.
It it is clear that the new tools being developed in the Internal
!venue Service will require new techniques and create new problems.
~e

-11-

At the same time, they offer really substantial opportunities in the
form of improved tax administration and potential accurate information
about the tax system -- and indeed about our economy and our Society.
I refer not only to the automatic data processing procedures for
the handling of the vast quantities of data and paper that flow into
the Service, but also to the automatic legal retrieval machinery of
the Chief Counsel's ·Office of the Service that allows for the comprehensive collection of both precedents and current issues and makes
this information available quickly and selectively. These innovations
and the staggering amount of statistical data that they afford require
broad scope and substantial depth in the field of tax administration
in the years ahead. We must approach these innovations with both
wisdom and insight to achieve our twofold goals: One goal is a
smoothly functioning Internal Revenue Service, benefitting from the
techniques of modern management and cost effectiveness analysis which
the data now permit, and a second goal is to use these new techniques
and data to improve our tax system and to afford a maximum of significant knowledge about our society.
And so, whether we speak of tax legislation or of tax administration, we see both problems and opportunities for progress.
The problems may now seem stubborn and intractable -- and yet
there is always the challenging thought that if we only had more
knowledge they would yield to solution and progress. For knowledge
and calm discussion and analysis of the issues -- will make it
possible to achieve a concensus as to the changes to be made in the
years ahead.
Taxes touch in many ways both sensitive and subtle on our
economy and our society. For that reason the important forward steps
must rest on a broad concensus.
Our tax system can and will make a significant contribution to
the Great Society. The goals of thatSociety depend entirely for their
achievement on an expanding and prosperous America, with the fruits
of that prosperity spreading to all parts of the land and all our
people. For this wise management of the tax system is an indispensible requirement.
These tasks -- and the efforts to seek a concensus on the broad
steps
are a challenge to each of the professions represented here
today -- the scholars, the lawyers, and the accountants.
Let us see that we all rightfully earn our place in that Society
through the contributions we make in the years ahead.
000

TREASURY DEPARTMENT

December

5, 1964

FOR IMMEDIATE RELEASE
TREASURY MARKET TRANSACTIONS IN NOVEMBER
During November 1964, market transactions in
direct and guaranteed securities of the government
for Treasury investment and other accounts resulted
in net purchases by the Treasury Department of
~100,058,000.OO.

000

D-1428

~04

TREASURY DEPARTMENT

December

5, 1964

AIOO,058,000.OO.

000

D-1428

DRAFT PRESS RELEASE
FOR DEC. 7, 1964
Secretary of the Treasury Douglas Dillon today announced
a drawing by the United States on the International Monetary
Fund.

The drawing in the amount of $125 million is the fifth

made by the United States and is in German marks.
Total drawings in 1964 now amount to the equivalent of
$525 million in various foreign currencies.

A sizable part

of these drawings have been offset, however, by the drawings
of United States dollars by other countries during the period.
When other countries draw dollars from the Fund it restores
the U.S. position and in effect,',amounts to repayment by the
United States.

As a result the net reduction in United States

drawing rights on the Fund has been only about $265 million.
The currency drawn is expected to be used, as in the
past, for sale for dollars to other Fund members for their
use in making repayments to the Fund.
000

D-1129
Approve:

~.----;7

/'
Disapprove: ______

DEC 3 - 196'1

TREASURY DEPARTMENT

December 7, 1964
FOR IMMEDIATE RELEASE
TREASURY ANNOUNCES IMF
DRAWING IN GERMAN MARKS

Secretary of the Treasury Douglas Dillon today
announced a drawing by the United States on the International Monetary Fund.

The drawing in the amount of $125

million is the fifth made by the United States and is in
German marks.
Total drawings in 1964 now amount to the equivalent of
$525 million in various foreign currencies.
of these drawings has

A sizable part

been offset, however, by the drawings

of United States dollars by other countries during the
period.

When other countries draw dollars from the fund it

restores the U. S. position and in effect amounts to repayment by the United States.

As a result the net reduction

in United States drawing rights on the Fund has been only
about $265 million.
The currency drawn is expected to be used, as in the
past, for sale for dollars to other Fund members for their
use in making repayments to the Fund.

000

D-1429

TREASURY DEPARTMENT

December 7, 1964

FOR lliMEDIATE RELEASE

TREASURY DECISION ON BEEF STEAKS
UNDER THE ANTIDUMPING ACT
The Treasury Department has determined that beef steaks packed 12
packs to a carton or case, each pack weighing 18 ounces net, from Canada, produced by Holiday Farms Ltd., Chippawa, Ontario, Canada, are
not being, nor likely to be, sold in the United states at less than
fair value within the meaning of the Antidumping Act.

Notice of the

determination will be published in the Federal Register.
Appraising officers are being instructed to proceed with the appraisement of this merchandise from Canada without regard to any question of dumping.
The dollar value of imports of the involved merchandise received
during the period from December 1, 1963, through July 1964 was approximately $56,000.

000

TREASURY DEPARTMENT

December 7, 1964

FOR IMMEDIATE RELEASE
TREASURY DECISION ON BEEF STEAKS
UNDER THE ANTIDUMPING ACT
The Treasury Department has determined that beef steaks packed 12
packs to a carton or case, each pack weighing 18 ounces net, from Canada, produced by Holida¥ Farms Ltd., Chippawa, Ontario, Canada, are
not being, nor likely to be, sold in the United States at less than
fair value within the meaning of the Antidumping Act.

Notice of the

000

""'0

:~.

POR Rl:LUSE A.

'huN.

NEWSPAPb:n8,

!)!!pb!r 8. 1969.

1)eoember 7, 196U

Rr.'S'JLTS OF Utf.A.8URJIS IlUKLY bItL "fi';--i-;:itlfID
'lhe Treuur7 ~Dt annoaeed lM\ . . .In,: that the tends,.. tw t.wo IU'leI II
'treaelll7 bill., OM . .ri.. to be _ addtUC8IIl laue of the blUe dated Sept __ lOa
196b, and the otber ..ri•• \0 be _\eel 0.1 • .,.. 10, 19~k, wt.1oh were ottered •
n.e.ber 2, W1"e opened at the hKtara1 JINerft ~s on Decellber 7. Tendlra . . .
lnYited tor $1,)00,000,000, 01" t.bere8ltouw, ., 9l-dA,y billa and tor .1,000,000,000,
or thereabout.e, ()f 182-cSa.Y bW.a. ftle deta11e 01 the two ser1es are .. toU...
RA~"QE or ACC!PTED
91 __ 'treuuI7 bUb
l82~ t ..... UI") bUll
COMPE'I'ITlvr. nIm,
llat.v!IpI M..-.b
..turing :1. . 10.1£!t

n, •

Price

99.052

l~.
'Y.
A....l ....

'Price
~L .020

).1SOl

99.021

.~nnua1

It"

).916J

~J1.Y92
9C.()()6

).81»

).1lS.1:I

99.0)6

Appro&.

3.972$
).9L.L%

'tI

of tlIe ..awIt of 9l-dq ~ w t.,. at. the low pl'1oe wu __pt.ed
8mOUIlt, 01 182....,. Id.1la bid tor at, the low price vu aooept.ed

7S~

40J ot the
TOTAL

TF:~~DlrtS

A?tLI.t;D MR AtJD ACC!".ptf',n BY

D1a\l'1ct.

15,,",006

A~
..,,000

29,713.000
38,166,000

lI,n3,OOO
)7,f66,OOO

Api\l1ed FOI'

Gion

1.J06,lS7,ooo

. " lork
Philadelphia
Cl,e.,.land
~110ba0ad

818.SO'I,OOO

21,4.)6,000

4S,861.,ooo

AU.,ta
Chioav,o

11S,999,OOO
)2,887,000

St. I.ouis
Minneapolis
KansQS City

Dallu
381'1 F'raneiaco
toTALS

PF.llI~;;',.,E.c~':~

s A"pUed For
~

21,456,000

150."',000 I
29,887,000:

22,)bO,OOO

u,~o,oao

29,)18,000
)0,989,000

A",~

•

~o,6/I

llS,lOS,S,~7,0II

36,JaS,-,

11, "u9,'XX)

U,I.:O,,_

12': , 160,JOO

el,,,,,.

19.8)6,~J

US, 861 ,000

74.786,000
.1,)OO,177,ooo!l

23.1l),OC>'J
1,319,1;)$,!)O'J
1),;1;;1,000
Jt,l2r~,.::nJ

29,)18,000

30,98',000
79.786,000
$1,828,)27,000

L-1SrR[CT~)1

11., 732, GOO

~~, 7LS,(Y)O
1),929,000
11,21<';, ')j()

72,~/11.{m

.1,672,f;:)J,OlJO

17,856,CII

1),6)1,_
8, ,",S,-

1),119,ll,21S,_

se.711••

$1.000,)00,-

aI Inclu~. :''257, 735,000 nonc~t1t,lY.

t.nder. aeca:<\. d ;,t, .... he I'werf<.g. prl.. at "~'
Includlt. $91,211,0:» noncQllP8t.1t.ift t.4I'ftcere acoe ~--:d t;,t, t.he aV'~rQ,~. pri.ce of H. ,
On a eoupon issue of toh. 3 . . . 1en-r.ct.b an4 tor \b£: 6at 1i9 am )"nt. invest.ed, t.he n __ .
the" bill. would pNridtt 1 1.1d8 of l.Yl', tor t.b~ )l-daJ bills, and
t.
t.he It2.0a::r billa. Interest. rat.. on bills ara q .ot,..-d in te","<8 or bank
w't.h the ret.urn r(tli.'wc1 t-o \be race ...,..t of 'W:i" billa .)ayable at ma~ur1" .....
than the IIIInunt. ifty••ted aDd t.he1l" 1~ 1n actual number of days rela\d'"
)6O-da;y ~tJar. In oontrut., ~lel" Oft oeRittCh1.,e;;, dotes, and bood. an .......
1ft Wl?.a of inlAl'Mt on \he a.owrt, 1nY~, and r'~lat.e tt.e n\lllber of dq8 . . . . .
ing in an lnte,..,st. f~Dt period to the utual ll\.D'ltb»r III da",'8 14 the per~ til
sesd-annGal ocapoundng 1t more t,ban ODe ooupon ;:>erioo 1.s involvfd.

11.*.
dil."-

,~. 'I c( ,- j
\.,

TREASURY DEPARTMENT
FOR RELEASE A. M. NEWSPAPERS,

The Treasury Department announced last evening that the tenders for two series of
rreasury bills, one series to be an additional issue of the bills dated September 10,
196h, and the other series to be dated December 10, 1964, which were offered on
~cember 2, were opened at the Federal Reserve Banks on December 7.
Tenders were
0
invited for $1,30 ,000,000, or thereabouts, of 91-day bills and for $1,000,000,000,
or thereabouts, of 182-day bills. The detail::; of the two series are as follows:
~NGE OF ACCEPTED
91-day Treasury bills
:
182-day Treasury bills
~OMPETITIVE BIDS:
maturing March 11, 1965
:
maturing June 10, 1965
Approx. Equiv.
.
Approx. Equiv.
Price
Annual Rate
Price
Annual Rate
High
99.052
3.750%
98.020
3.916%
Low
99.021
3.873%
97.992
3.972%
Average
99.036
3.815% !/
98.006
3.944% !/

75%
40%

of the amount of 91-day bills bid for at the low price was accepted
of the amount of 182-day bills bid for at the low price was accepted

TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
Applied For
District
Accepted
Acce,eted
AEElied For
Boston
$
23,110,000
$15,455,000 $ 15,455,000
23,110,000 $
New York
715,105,000
818,507,000
1,319,105,000
1,306,357,000
"Philadelphia
10,957,000
5,957,000
22,713,000
29,713,000
lClevel8Ild
3~( ,966,000
38,225,000
36,425,000
38,166,000
CRiclunond
11,649,000
11,649,000
21,456,000
21,456,000
;Atlanta
17,856,000
19,856,000
45,861,000
45,861,000
~hicago
83,960,000
128,160,000
150,999,000
175,999,000
\St. Louis
13,632,000
14,732,000
32,887,000
29,887,000
~inneapolis
8,745,000
8, 7~.5,000
22,340,000
22,340,000
'-Kansas City
13,929,000
13,929,000
29,318,000
29,318,000
~.nallas
11,215,000
11,215,000
30,989,000
30,989,000
£
.San Francisco
7'21.
,,000
917
58,,717zoo~
74,,786,,000
79,,786,,000
TOTALS
$1,828,327,000 $1,300,277,000 51 $1,672,600,000 $1,000,3 00,000 £/
IIncludes $257,735,000 noncompetitive tenders accepted at the average price of 99.036
Includes $91,211,000 noncompetitive tenders accepted at the average price of 98.006
On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 3.91%, for the 91-day bills, and 4.08%, for
the 182-day bills. Interest rates on bills are quoted in terms of bank discount
with the return re12.ted to the face amount of the bills payable at maturity ra.ther
than the amount invested and their length in actual number of days related to a
360-day year. In contrast, yields on certificates, notes, and bonds are computed
in terms of interest on the amount invested, and relate the number of days remaining in an interest payment period to the actual number of days in the period, with
semi-annual compounding if more than one coupon period is involved.

rOTAL

D-1430

TREASURY DEPARTMENT
(

December 8, 1964

FOR IMMEDIATE RELEASE
~EQEMBER
8, 1964
UNITED STATES AND INDIA TO DISCUSS
NEW INCOME TAX TREATY
The United States and India will begin discussions soon with
the aim of drawing up a proposed tax treaty.
The purpose of the treaty would be to avoid double taxation
and to foster trade and investment between the two countries.
A proposed treaty between the two countries was signed in
1959 but was never made effective. It contained a tax-sparing
clause under which the United States would have allowed a credit to
U. S. taxpayers for reductions given to them by India under its
investment promotion law.
The new treaty is not expected to contain such a tax-sparing
clause.
It would be concerned with the tax treatment of trading
and other businesses, of investment income and income from services,
such as fees, salaries or wages.
Anyone who cares to make suggestions for consideration in the
treaty is askerl to send his views to Assistant Secretary of the
Treasury Stanley S. Surrey, before February 1, 1965.
The principles of U. S~ international tax policy were set
forth on September 21, 1964, in the form of a speech by Assistant
Secretary Surrey in Montreal. Recommendations regarding the proposed treaty with India should be made with those principles in
mind. In addition, examination of the previous treaty with India
-- recently returned by the Senate to the Executive Branch at the
President's request -- might prove worthwhile to those making
suggestions.

D-1431

-2against the additional United States tax required because
of an adjustment under Section 482. The offset will be
based upon the additional foreign tax paid by the United
States-controlled foreign companies because they included
in their income amounts allocated to the U.S. taxpayer
by the Internal Revenue Service under Section 482. In
addition, under the new policies the Internal Revenue Service will not pursue certain types of cases in years before
1963. These types of cases are described in a technical
information release from the Internal Revenue Service,
published at the same time as this announcement.
The new policies set forth in the technical information release will be republished in the form of a
Revenue Procedure (Revenue Procedure 64-54, which will
appear in Internal Revenue Bulletin 1964-52, dated December
28, 1964).
The Revenue Procedure not only outlines the new policies,
but also sets forth the circumstances under which taxpayers
may take advantage of them. It also describes the method
of obtaining the tax relief.
Publication of the Revenue Procedure is part of an
effort to make available to taxpayers additional policy
guidelines on the administration of rules governing taxation
of international operations. This effort includes publication of: (1) regulations under all sections of the 1962
Act; (2) a comprehensive Revenue Procedure containing
guidelines which the Internal Revenue Service will apply
in considering requests for rulings under Section 367 of
the Internal Revenue Code; and (3) specific regulatory
guidelines under Section 482 for years beginning after
January 1, 1963.
Work is currently being done on all of these projects
and is expected to be completed in the near future.
Copies of the technical information release may be
obtained from the Public Information Division of the Internal Revenue Service.

TREASURY DEPARTMENT
(

December 8, 1964
ADVANCE FOR USE IN A.M. PAPERS OF
THURSDAY, DECEMBER 10, 1964
TREASURY ANNOUNCES NEW REVENUE PROCEDURE GOVERNING
TAXATION OF U.S. FIRMS OPERATING ABROAD
The Treasury today announced new policies which will
be followed in applying Section 482 of the Internal Revenue
Service Code.
The new policies will apply only to taxpayer years
starting before January 1, 1963. Policies applicable to
later years will be announced shortly in the form of proposed regulations.
Section 482 affects U.S. taxpayers who have dealings
with foreign corporations they control. It allows the
Internal Revenue Service to adjust the reported income of
such taxpayers to more accurately reflect income earned from
dealings with their affiliates.
Although Section 482 has been a part of the Internal
Revenue Code for many years, taxpayers have frequently misinterpreted its requirements concerning foreign transactions.
As a result, the Internal Revenue Service has frequently
found that the income of U.S. taxpayers controlling foreign
affiliates has been understated and, therefore, subject to
adjustment under Section 482. In many cases, however, the
United States-controlled foreign companies had already paid
taxes to foreign countries on income which should have been
allocated to the U.S. taxpayers. Therefore, if ordinary
Section 482 adjustments Were made in these cases now, double
taxation and other forms of hardship would result.
The primary purpose of the new policies is to avoid
such double taxation on income in years beginning before
January 1, 1963. They will do this by allowing an offset

D-1432

TREASURY DEPARTMENT

December 8, 1964
ADVANCE FOR USE IN A.M. PAPERS OF
THURSDAY, DECEMBER 10, 1964
TREASURY ANNOUNCES NEW REVENUE PROCEDURE GOVERNING
TAXATION OF U.S. FIRMS OPERATING ABROAD
The Treasury today announced new policies which will
be followed in applying Section 482 of the Internal Revenue
Service Code.
The new policies will apply only to taxpayer years
starting before January 1, 1963. Policies applicable to
later years will be announced shortly in the form of proposed regulations.
Section 482 affects U.S. taxpayers who have dealings
with foreign corporations they control. It allows the
Internal Revenue Service to adjust the reported income of
such taxpayers to more accurately reflect income earned from
dealings with their affiliates.
Although Section 482 has been a part of the Internal
Revenue Code for many years, taxpayers have frequently misinterpreted its requirements concerning foreign transactions.
As a result, the Internal Revenue Service has frequently
found that the income of U.S. taxpayers controlling foreign
affiliates has been understated and, therefore, subject to
adjustment under Section 482. In many cases, however, the
United States-controlled foreign companies had already paid
taxes to foreign countries on income which should have been
allocated to the U.S. taxpayers. Therefore, if ordinary
Section 482 adjustments were made i~ these cases now, double
taxation and other forms of hardshir would result.
The primary purpose of the new policies is to avoid
such double taxation on income in years beginning before
January 1, 1963. They will do this by allowing an offset

D-1432

-2against the additional United States tax required because
of an adjustment under Section 482.
The offset will be
based upon the additional foreign tax paid by the United
States-controlled foreign companies because they included
in their income amounts allocated to the U.S. taxpayer
by the Internal Revenue Service under Section 482.
In
addition, under the new policies the Internal Revenue Service will not pursue certain types of cases in years before
1963. These types of cases are described in a technical
information release from the Internal Revenue Service,
published at the same time as this announcement.
The new policies set forth in the technical information release will be republished in the form of a
Revenue Procedure (Revenue Procedure 64-54, which will
appear in Internal Revenue Bulletin 1964-52, dated December
28, 1964).
The Revenue Procedure not only outlines the new policies,
but also sets forth the circumstances under which taxpayers
may take advantage of them.
It also describes the method
of obtaining the tax relief.
Publication of the Revenue Procedure is part of an
effort to make available to taxpayers additional policy
guidelines on the administration of rules governing taxation
of international operations. This effort includes publication of:
(1) regulations under all sections of the 1962
Act; (2) a comprehensive Revenue Procedure containing
guidelines which the Internal Revenue Service will apply
in considering requests for rulings under Section 367 of
the Internal Revenue Code; and (3)
specific regulatory
guidelines under Section 482 for years beginning after
January 1, 1963.
Work is currently being done on all of these projects
and is expected to be completed in the near future.
Copies of the technical information release may be
obtained from the Public Information Division of the Internal Revenue Service.

- 2 The Bureau of Accounts is responsible for a variety of
federal
financial services concerned with accounting for and
..
....
~-

disbursing of federal funds and for reporting these and other
financial activities of the federal government, including the

Annual Report of the Secretary of the Treasury on the State of

the Finances," and the "Monthly Statement of Receipts and

Commissioner Gearhart is a graduate of Drake University.
He began his Government career in June, 1935, as the AccountantIn-Charge of the Iowa Treasury State Accounts Office.

He has

served as Commissioner of the Treasury Bureau of Accounts since
January 1, 1961.

fOR RELEASE AFTER 3:00 PM
WEDNESDAY, DECEMBER 9, 1964
BUREAU OF ACCOUNTS CHIEF RECEIVES
EXCEPTIONAL SERVICE AWARD
Treasury Secretary Douglas Dillon today presented the
Treasury's Exceptional Service Award to Mr. Harold Ro Gearhart,
Corrnnissioner of Accounts, for his "outstanding contributions" to
the total management effort of the Treasury Department.
In award ceremonies at the Treasury Department, Secretary
Dillon praised Connnissioner Gearhart for his "top management
follow-through, perseverance and day-to-day leadership."

The

Secretary noted that the last four annual budgets of the Bureau
of Accounts have shown total savings of $3 million, despite a
25 percent increase in the workload during that period.

The

Bureau has also contributed significantly to the joint program of
the Treasury, the Comptroller General and the Bureau of the
Frl!

Budget

improving financial and accounting reporting on a

government-wide

basi~

't.

TREASURY DEPARTMENT

December 9, 1964
FOR RELEASE AFTER 3:00 P.M.
WEDNESDAY, DECEMBER 9, 1964
BUREAU OF ACCOUNTS CHIEF RECEIVES
EXCEPTIONAL SERVICE AWARD
Treasury Secretary Douglas Dillon today presented the
Treasury's Exceptional Service Award to Mr. Harold R. Gearhart,
Commissioner of Accounts, for his "outstanding contributions"
to the total management effort of the Treasury Department.
In award ceremonies at the Treasury Department, Secretary
Dillon praised Commissioner Gearhart for his "top management
fo1low- through, perseverance and day- to-day leadership." The
Secretary noted that the last four annual budgets of the Bureau
of Accounts have shown total savings of $3 million, despite a
25 percent increase in the workload during that period. The
Bureau has also contributed significantly to the joint program of
the Treasury, the Comptroller General and the Bureau of the
Budget for improving financial and accounting reporting on a
government-wide basis, he added.
The Bureau of Accounts is responsible for a variety of
central financial services concerned with accounting for and
disbursing of federal funds and for reporting these and other
financial activities of the federal government, including the
"Annual Report of the Secretary of the Treasury on the State of
the Finances," and the "Monthly S ta tement of Rece ipts and
Expend i tures . "
Commissioner Gearhart is a graduate of Drake University.
He began his Government career in June, 1935, as the
Accountant-In-Charge of the Iowa Treasury State Accounts Office.
He has served as Commissioner of the Treasury Bureau of
Accounts since January 1, 1961.

000

- 12 -

can, of course, be no guarantee that your advice will be followed.
Your primary interest is that of importers, and while we have always
had the highest regard tor your judgment and intelligence, no one
could blame you if you sought the immediate adoption of unrestricted
free trade.

We must consider the needs of importers, but we must

consider the needs of others as well.

Some of these seek limitation

of imports to nothing much beyond coffee and bananas.

They have not

been backvmrd in giving us their views.
The point I vmnt to make is this.
of history in relation to world trade.

We are at a critical period
Trends can be established in

the next few years or even months which will be hard or impossible
to reverse.

\mt is said and what is done by groups such as yours

can have an influence in guiding or in balancing the direction of these
trends.

It is an awesome responsibility.

shirk it.

000

I do not believe you vall

- 11 -

to January J, then,in the event of a dumping finding made thereafter,
dumping duties

v~uld

be assessed on unappraised entries under the old

120 day retroactivity provision.
This, in brief - or maybe it has not been so brief - is the substance
of the newly adopted amendments to the regulations under the Antidtnnping
Act.

For those who \vish to study the subject in detail we have prepared

what the charitable organization drive managers call a "kit," which can
be made available on request to the Commissioner of Customs,
D. C. 20220.

\~shington,

It consists of a background memorandum, a comparative print

showing how the adopted amendments differ from those proposed earlier in the
year, a copy of the Federal Register notice, and a copy of the regulations
as they will be in effect on January J, 1965.
Past experience of appearances before your distinguished organization
has taught me that no group can be more searching in the questions its
members thrOVl at the speaker following a speech.
on this occasion, I do not stand alone.

Fortunately for me,

Beside me is Ed\1in F. Rains,

Esquire, Senior Assistant General Counsel of the Treasury Department.
1~.

Rains is one of the select few who knows everything there is to be

knoVin about Customs.

addition, he

.'WaS

document which is now under discussion.

a principal architect of the
With him here, every question

can have an answer.
In conclusion may I express the hope that the National Council of
American Importers will continue to interest itself in matters relating
to the Antidumping Act and to give us the benefit of its advice.

There

- 10 Provision is made in regard to comparisons of similar merchandise
to brinp" the standards in line with those relating to ~ircumstances
C>

of sale.

In the latter case, the regulations have since 1960 provided

that the primary basis for calculating the comparison is the result of
the differences on the market value of the merchandise rather than the
differences in cost.

In respect of similar merchandise, however, the

regulations had set forth solely differences in cost as the basis for
calculation.

This is now changed so that in both cases the primary

basis relates to effect on market value.
Further amendments provide for publication of an antidumping proceeding
notice in cases where the complaint is judged to be worthy of consideration,
limitation of notices to individual foreign firms rather than countries
in appropriate instances and possible consolidation of related cases.
The entry into force provision works out as follows:

Cases which are

finally decided prior to January :3, 1965, will have been processed without
reference to the new amendments.

Any case which is not brought to the

attention of the Carmnissioner of Customs until January :3, 1965, or any
time thereafter will be handled entirely in accordance with the regulations
as amended.

As to cases filed before January :3, but still pending on that

date, the new provisions relating to confidentiality of information, quantity
discounts and comparisons of similar information will not apply.

All

other new provisions - for example, those relating to termination of
proceedings - will apply.

In this connection it may be noted that the provis~

as to retroactive assessment of dumping duties will work out as follQlS:
penaing cases where there has been no withholding of appraisement prior to
January :3, 1965, the neVi provision will apply:

dumping duties may not be

assessed on importations entered prior to publication of a withbolding
order.

However, should appraisement have been withheld prior

- 9 words, the importer is warned, once there is a withholding order,
that there may be trouble.

As to shipments then on the high seas

he need not worry if he has a reimbursement contract; as to purchases
made thereafter or as to any shipment exported after a detennination
of sales below fair value, dumping duties, if assessed, must be paid
out of the importer's ovm pocket.
These two provisions concerned with retroactivity and reimbursement
apply only to situations where the importer and the foreign producer
are dealing with each other at ann's length.

Vfuere they are related

one to the other (i.e., in cases where exporter's sale price rather
than purchase price is the basis for comparison with fair value), these
new provisions do not apply.
The third provision, relating to tennination of cases, in effect
allows Treasury to close cases vdthout reference to the Tariff Commission
when no useful purpose can be served by the reference.

The Tariff Carmnission

haS on occasion complained that Treasury has sent over cases which should

never have been referred to it.

While the new provision vdll not allow

Treasury to substitute its opinion for that of the Commission as to what
constitutes injury, Treasury will now have no reason to refer cases, for exam]
v/here United states industry sees no point in having the reference made.
(Some of you may remember TIleaS'l..l.rY's reference to the Commission of the 1957
South African ha'rcdbrorcl case despite cru.r 0vm hardboard industr-.f's d:isclaimer
of interest.)

In addition, closing of some cases where there has been pranpt

pJ'ice revision vdth no likelihood of future price discrimination will be
facilitated.

- 8 -

Perhaps the most important of these is the amendment relating
to retroactive assessment of dumping duties.

Under a 1954 amendment

of the law, dumping duties may be assessed as far back as 120 days
prior to receipt of a complaint. (Prier to 1954 retroactivity was
unlimited)

Vfuile there bas been no regulation covering this point,

the provision has up to now been construed to mean that dumping
duties must be assessed retroactively to the full extent permitted by
law.

Decision has been reached that this interpretation is not

required by law and is unduly harsh.

The new amendment establishes

a cut-off date for assessment of dumping duties starting as of the
time that appraisement may be withheld, in cases where the price to the
United states is calculated on the basis of purchase price.

The amend-

ment is not worded so as to insure that there will be complete freedom
from retroactive assessment.

If at the time of a dumping finding there

they will be subject to assessment of

dumping duties under the 120 day retroactivity provision.
In addition, as to goods which the importer purchased prior to
published notice of the withholding order which do not arrive until
after the date of the notice, it is now provided that the importer may,
pursuant to agreement with the foreign producer, secure reimbursement from
the foreign producer for dumping duties charged against the imports
provided they are not shipped after the date of the notice.

In other

- 7 prove a given point.

However it is hoped and intended that decisions

on cost justification will be reached on a common sense basis.
In addition to this amendment, provision is made that offers of sale
which cannot be expected to be acted on are not to be considered as
in a dumping case.

rele~t

example of what we have in mind would be offers of

heavy winter overcoats in a tropical country market.
Treasury made the point when the amendments were first proposed
that they were tlnot designed to make the administration of the Antidumping
Act either more or less restrictive. tI

Quite obviously some of the amendments

are more desired by domestic industry, some more desired by importers. WWUe
the provisions relating to confidentiality and confrontation have been
sponsored by both sides, recent comment indicates a number of importers
are frightened, in particular by the confidentiality issue.

Administered

by essentially protectionist-minded government officials they could without
doubt act as a substantial curb to foreign trade.

But this curb is potential1

there with or without these particular provisions.

Unless the administration

can be impartial the result will be unfair, one way or another.

With proper

exercise of judgment the neVi provisions should lead to more equitable, because
more freely considered, decisions.
This may be an appropriate place to note that in a recent Tariff
Commission proceeding the importer's representative stated if Treasury
had provided confrontation the case would never have had to go to the
Commission.
Three amendments which are clearly of benefit to importers deal
with retroactivity, reimbursement and termination of proceedings.

- 6 Given the fact that each of the interested parties in a dumping
case can now expect to know something about what is at issue, provision for
confrontation becomes logical, and it is made.

At the same time it has

been recognized that public hearings of a quasi-judicial type, with five
or ten thousand pages of printed records and five or ten years' delay in
reaching decision would be inconsistent with any program to encourage free
flow of trade.

Although recognizing the unwillingness of disappointed

contestants to give up until the last remedy has been exhausted, there
seems no reason why these confrontation proceedings can not be accomplished
informally

and speedily and result in substantially just decisions.

other words, we do not plan to have a record of the confrontation proceedings.

Nor do we envisage at this time any formal set of ground rules

for confrontation.

We would, however, expect to announce in advance the

amount of time the parties would be given to present their views, and we
would adhere to such schedule.
A further amendment developed in the light of experience over the
years deals with quantity discounts.

Increasing difficulty has been

encountered with claims that price discrimination is justified merely on
the basis of large quantities, irrespective of whether there is any
possible cost justification involved.

The solution here adopted was to set

a cut-off figure which we regard as reasonable.

If at least 20 percent

of home market sales benefit from a given quantity discount, then the
discount will ordinarily be recognized also in respect of sales to the
Uni ted states.

Otherwise a cost justification will be needed.

Here

in many other situations arising under the new amendments, it is too early

to lay down detailed rules as to what type of evidence may be required to

- 5 The provisions adopted in the amended regulations carefully
define what will be considered a valid basis for keeping information
confidential.

In general the tests to be applied are:

would dis-

closure of the information be of significant competitive advantage
to the competitor?

\Vould its disclosure have a significantly adverse

effect upon the person supplying the information?
to either question

Affirmati ve answer

justifies confidential treatment.

Additional pro-

vision is spelled out on the use of summaries where detailed information
may not be divulged but where, under the tests, the summaries may be.
As

a practical matter it is expected that these summaries \r.lll be prepared

by the person who supplies the information.
Particularly ¥ath respect to the cases considered in the first
year or tyro following entry into force of the amended regulations,
there are bound to be differences of opinion as to what should and
what should not be considered confidential.

Treasury officials can

lay no claim to universal wisdom in reaching decisions, and following
long established practice they have no desire to, nor will they, violate
confidences.

However, in those instances where they see no reason to

keep confidential information which the submitter insists must not be
revealed, same solution has to be reached.

The solution here effected

is to give the submitter a choice. Either he withdraws his request for
confidential treatment or he must accept the principle that the information, though remaining undisclosed, will not be used to support his
position in the case at hand.

- 4 A natural consequence of the practice of secrecy was that the
Bureau of Customs would receive successive visits first from one
side, then from the other.

The complainant would,in effect, whisper

his secret allegations, and leave.
with his secret denials.

The importer would then come in

The complainant would come back with more

infonnation; ::riven in strict confidence.

The Bureau would check as

best it could with the importer, revealing nothing.

The importer

would furnish further data in confirmation of what had been offered.
And so; nn it has gone, week after week, month after month.
It appears that the natural solution to this problem must be to
adopt a confrontation procedure in which both sides can be heard at
the same time.

Such a procedure, of course, could not have been

meaningful to any significant degree so long as all of the information
received had to be treated as confidential.

A confrontation under such

circumstances could have resulted only in argument in a vacuum.
Decision to adopt this solution was not, however, adopted until
a great deal of thought had been given to just how far we should go.
Quite obviously there can be information on each side of a case which
must rE".JIl8.in unrevealed.

Quite obviously a practice of "telling all"

can be an open invitation to fishing expeditions designed solely to secure
information to which the angler has no right, or designed merely to
harass.

This is not to say that the open invitation will

necessarily

be accepted by many; but it could be accepted by a few, and there is no
reason to unlock doors to safes where the safes contain information which
should not be given out to competitors.

- 3 merchandise are provided in the regulations incorporating a reference
to the Act (section 212) but they are spelled out in details not covered
by the provisions of the Act.
The amendments which have now been adopted effect a change in
regard to adjustments for quantity discounts and similar merchandise.
They make no change in regard to adjustments for circumstances of sale.
In addition the amendments provide new procedures in regard to
consideration of cases, notably including provision as to making
information available, confrontation and argument, processing of
complaints, and termination of proceedings; and they add new provisions relative to retroactivity and reimbursement of dumping duties.
The change which has attracted the most attention in the press
has been the provision in regard to making information available.
until now the person who submitted data of

sort in a dumping case

could label the submission "confidential" and that would be an end to
the matter - the data would remain a deep qyed secret no matter how unjustified the need for secrecy might be.

Indeed the Bureau of Customs

in asking foreign producers to supply information has given a blanket

guarantee of secrecy

vmether or not there was a request for such

treatment.
Complaints as to this practice came from importers and domestic
producers alike.

The importers wanted to know what they were charged

vdth having done; the domestic producers wanted to know why their charges
were not taken at face value.

Both sides were in the dark.

- 2 -

vnll be substituted for home market price.)

The price to the United

States is called "purchase price" if the foreign producer and the United
States importer are dealing at arm's length.

It is called "exporter's

sales price ll if the foreign producer and the importer are related.
IIFair value ll is undefined in the law.

It is defined in regulations.

The simplest and the most usual way to start, in calculating
pursuant to the regulations whether the foreign producerrs price to
the United States is less than IIfair value,1I is to adjust both prices,
the home market price ("fair value") and the price to the United States,
to an f.o.b. factory basis.

This means that the Treasury Department

adjusts out packaging charges and freight.

It also washes out taxes

rebated on export, and rebated import duties - this latter in line
with our procedures for drawback.

It also makes adjustments for quantity

discounts, for other differences in circumstances of sale, and for
differences in physical characteristics where the price comparison is
between similar but not identical merchandise sold in the two markets.
The adjustments relating to packaging charges, freight, taxes and
import duties are provided in the regulations under the Antidumping Act
in that the regulations incorporate by reference the provisions of
the Antidumping Act relative to purchase price (section 203), and exporter's
sales price (section 204).

The adjustments relating to quantity discounts

and other ciruumstances of sale are provided in the regulations without
reference to the Act.

(It is true that section 202 of the Act refers

to adjustments for these circumstances but this is for the purpose of
calculating dumping duties only.)

The adjustments relating to similar

FOR RELEASE UPCN DELIVERY
THE 1964 AMENDMENTS TO THE RID1JLATICNS UNDER THE ANTIDUMPING ACT
RF.MARK.S OF JAI\1ES PCJ.hEROY HENDRICK
DEPUTY ASSISTANT SECREI'ARY OF THE TREASURY, BEFORE
THE NATICNAL COUNCn. OF AMERICAN IMPORTERS
AMERICANA HarEL, NEW YORK
ON THURSDAY, DECEMBER 10, 1964
12: 30 p. M., EST

With his unerring sense of timing your Executive Vice President
long ago selected today as the time for a talk on amendments to the
regulations under the Antidumping Act.

When he thereupon asked me to

appear before you I had no knowledge of when these amendments would
be published.

Apparently Mr. Radcliffe's crystal ball showed him

quite clearly that the amendments would appear in the Federal Register
on December 5, so of course December 10, the first Thursday thereafter,
was the right time to schedule the talk.

It must be an exercise in

medieval necromancy!
Let me start with a few fundamentals:
The Antidumping Act comes into play when a foreign producer sells
goods to the United States at a price lower than what he charges in his
home market with resultant injury to an American industry.

Where this

is the situation, special dumping duties are assessed on the imports
measured by the price differential which is found.
Decision whether there is such a price differential is made by
the Treasury Department.

Decision whether there is injury is made by

the Tariff Commission.
I repeat, the price comparison Treasury makes is between the foreign
producer's home market price and his price to the United States.
market price is called "fair value."

The h~

(Under certain circumstances export

price to countries other than the United States or cost ofl production

lORiID WE

UPW DELIVERY

THE 1964 AMENDMENTS TO THE RmUIATICtlS UNDER THE ANTIDUMPING ACT
RWARKB OF JAMES Pcm:ROY HENDRICK
DEPl1rY ASSISTANl' SECREl'ARY OF THE TREASURY, BEFORE
THE NATICtlAL COUNCn. OF AMERICAN IMPORl'ERS
AMERICANA HillEL, NEW YORK
ON THURSDAY, DECEMBER 10, 1964
12:30 P. M., EST

With his unerring sense of timing your EXecutive Vice President
long ago selected today as the time for a talk an amendments to the
regulations under the Antidumping Act.

When he thereupon asked me to

appear before you I had no knowledge of when these amendments would
be published.

Apparently Mr. Radcliffe's crystal ball showed him

quite clearly that the amendments would appear in the Federal Registp.r
on December 5, so of course December 10, the first Thursday thereaftp.r,
was the right time to schedule the talk.

It must be an exercise in

medieval necrqmancy!
Let me start with a few fundamentals:
The Antidumping Act comes into play when a foreign producer sells
goods to the United States at a price lower than what he charges in his
horne market with resultant injury to an American industry.

Where this

Decision whether there is injury is made

the Tariff Commission.
I repeat, the price comparison Treasury makes is between the fcreir,n
producer's home market price and his price to the United States.
market price is called "fair value."

The horne

(Under certain circumstances expert

price to countries other than the United States or cost of production

- 2 -

will be substituted for home market price.)

The price to the United

States is called "purchase price" if the foreign producer and the United
States importer are dealing at ann's length.

It is called "exporter's

sales price" if the foreign producer and the importer are related.
"Fair value" is undefined in the law. It is defined in regulations •
•
The simplest and the most usual way to start, in calculating
pursuant to the regulations whether the foreign producer's price to
the United States is less than "fair value," is to adjust both prices,
the home market price ("fair value") and the price to the United States,
to an f.o.b. factory basis.

This means that the Treasury Department

adjusts out packaging charges and freight.

It also washes out taxes

rebated on export, and rebated import duties - this latter in line
with our procedures for drawback.

It also makes adjustments for quahtity

The adjustments relating to quantity discounts

and other ciruumstances of sale are provided in the regulations without
reference to the Act.

(It is true that section 202 of the Act refers

to adjustments for these circumstances but this is for the purpose of
calculating dumping duties only.)

The adjustments relating to similar

- J merchandise are provided in the regulations incorporating a reference
to the Act (section 212) but they are spelled out in details not covered
by the provisions of the Act.
The amendments which have now been adopted effect a change in
regard to adjustments for quantity discounts and similar merchandise.
They make no change in regard to adjustments for circumstances of sale.
In addition the amendments provide new procedures in regard to
consideration of cases, notably including provision as to making
information available, confrontation and argument, processing of
complaints, and termination of proceedings; and they add new provisions relative to retroactivity and reimbursement of dumping duties.
The change which has attracted the most attention in the press
has been the provision in regard to making information available.

until now the person who submitted data of any sort in a dumping case
could label the submission "confidential" and that would be an end to
the matter - the data would remain a deep qyed secret no matter how unjust~ied

the need for secrecy might be.

Indeed the Bureau of Customs

in asking foreign producers to supply information has given a blanket

guarantee of secrecy

whether or not there was a request for such

treatment.
Complaints as to this practice came from importers and domestic
producers alike.
with having

done~

The importers wanted to know what they were charged
the domestic producers wanted to know why their charges

were not taken at face value.

Both sides were in the dark.

- 4 A natural consequence of the practice of secrecy was that the
Bureau of Customs would receive successive visits first from one
side, then from the other.

The complainant would, in effect, whisper

his secret allegations, and leave.
with his secret denials.

The importer would then came in

The complainant would corne back with more

information; 7iven in strict confidence.

The Bureau would check as

best it could with the importer, revealing nothing.

The importer

would furnish further data in confirmation of what had been offered.
And so; on it has gone, week after week, month after month.
It appears that the natural solution to this problem must be to
adopt a confrontation procedure in which both sides can be heard at
the same time.

Such a procedure, of course, could not have been

meaningful to any significant degree so long as all of the information
received had to be treated as confidential.

A confrontation under such

Quite obviously a practice of "telling all"

can be an open invitation to fishing expeditions designed solely to secure
information to which the angler has no right, or designed merely to
harass.

This is not to say that the open invitation will

be accepted by

manyj

necessarily

but it could be accepted by a few, and there is no

reason to unlock doors to safes vmere the safes contain information which
should not be given out to competitors.

- 5The provisions adopted in the amended regulations carefully
define what will be considered a valid basis for keeping information
confidential.

In general the tests to be applied are:

would dis-

closure of the information be of significant competitive advantage
to the competitor?

Would its disclosure have a significantly adverse

effect upon the person supplying the
to either question

informatio~

Affirmative answer

justifies confidential treatment.

Additional pro-

vision is spelled out on the use of summaries where detailed infoITnation
may not be divulged but where, under the tests, the summaries may be.
As

a practical matter it is expected that these summaries will be prepared

by the person who supplies the information.
Particularly with respect to the cases considered in the first
year or two following entry into force of the amended regulations,
there are bound to be differences of opinion as to what should and
what should not be considered confidential.

Treasury officials can

lay no claim to universal vdsdorn in reaching decisions, and follovnng
long established practice they have no desire to, nor will they, violate
confidences.

However, in those instances where they see no reason to

keep confidential information which the submitter insists must not be
revealed, same solution has to be reached.

The solution here effected

- 6 Given the fact that each of the interested parties in a dumping
case can now expect to know something about what is at issue, provision for
confrontation becomes logical, and it is made.

At the same time it has

Although recognizing the unwillingness of disappointed

contestants to give up until the last remedy has been exhausted, there
seems no reason why these confrontation proceedings can not be accomplished
infonnally

and speedily and result in substantially just decisions.

other words, we do not plan to have a record of the confrontation proceedings.
for

Nor do we envisage at this time any formal set of ground rules

.
confrontation.

We would, however, expect to announce in advance the

arnollilt of time the parties would be given to present their views, and we
would adhere to such schedule.
A further amendment developed in the light of experience over the
years deals with quantity discounts.

Increasing difficulty has been

encountered with claims that price discrimination is justified merely on
the basis of large quantities, irrespective of whether there is any
possible cost justification involved.

The solution here adopted was to set

a cut-off figure which we regard as reasonable.

If at least 20 percent

of home market sales benefit from a given quantity discount, then the
discount will ordinarily be recognized also in respect of sales to the
Uni ted states.

Otherwise a cost justification will be needed.

Here as

in many other situations arising under the new amendments , it is too early
to lay down detailed rules as to what type of evidence may be required to

- 7 prove a given point.

However it is hoped and intended that decisions

on cost justification will be reached on a connnon sense basis.
In addition to this amendment, provision is made that offers of sale

which cannot be expected to be acted on are not to be considered as relevant
in a dumping case.

An example of what we have in mind would be offers of

heavy winter overcoats Ll a tropical country market.
Treasury made the point when the amendments were first proposed
that they were "not designed to make the administration of the Antidumping
Act either more or less restrictive."

Quite obviously same of the amendments

are more desired by domestic industry, same more desired by importers.

While

the provisions relating to confidentiality and confrontation have been
sponsored by both sides, recent comment indicates a number of importers
are frightened, in particular by the confidentiality issue.

Administered

by essentially protectionist-minded government officials they could without
doubt act as a substantial curb to foreign trade.

But this curb is potentially

there with or without these particular provisions.

Unless the administration

can be impartial the result will be unfair, one way or another.

With proper

exercise of judgment the new provisions should lead to more equitable, because
more freely considered, decisions.
This may be an appropriate place to note that in a recent Tariff
Cmmdssion proceeding the importer's representative stated if Treasury
had provided confrontation the case would never have had to go to the
Cmmdssion.
Three amendments which are clearly of benefit to importers deal
With retroactivity, reimbursement and termination ot proceedings.

- 8 Perhaps the most important of these is the amendment relating
to retroactive assessment of dumpine duties.

Under a 1954 amendment

of the law, dumpinG duties may be assessed as far back as 120 days
prior to receipt of a complaint. (Prier to 1954 retroactivity was
unlimited)

\v.hile there has been no regulation covering this point,

the provision has up to now been construed to mean that dumping
duties must be assessed retroactively to the full extent permitted by
law.

Decision has been reached that this interpretation is not

required by law and is unduly harsh.

The new amendment establishes

a cut-off date for assessment of dumping duties starting as of the
time that appraisement may be withheld, in cases where the price to the
United states is calculated on the basis of purchase price.

The amend-

ment is not worded so as to insure that there will be complete freedom
from retroactive assessment.

If at the time of a dumping finding there

have been importations entered prior to the withholding order which
happen to remain unappraised for reasons unconnected with the dumping
proceeding - for example, because of suspension of appraisement pending
a decision on classification ., they will be subject to assessment of
dumping duties under the 120 day retroactivity provision.
In additioli) as to goods which the importer purchased prior to
published notice of the vdthholding order which do not arrive until
after the date of the notice, it is now provided that the importer may,
pursuant to agreement with the foreign producer, secure reimbursement from
the foreign producer for dumping duties charged against the impOrts
provided they are not shipped after the date of the notice.

In other

- 9 words, the importer is warned, once there is a withholding order,
that there may be trouble.

to shipments then on the high seas

he need not worry if he has a reimbursement contract; as to purchases
made thereafter or as to any shipment exported after a determination
of sales below fair value, dumping duties, if assessed, must be paid
out of the importer f s own pocket.
These two provisions concerned with retroactivity and reimbursement
apply only to situations where the importer and the foreign producer
are dealing with each other at armfs length.

Where they are related

one to the other (i.e., in cases where exporterfs sale price rather
than purchase price is the basis for comparison with fair value), these
new provisions do not apply.
The third provision, relating to termination of cases, in effect
allows Treasury to close cases without reference to the Tariff Commission
when no useful purpose can be served by the reference.

The Tariff Camrrlission

has on occasion complained that Treasury has sent over cases which should
never have been referred to it.

While the new provision will not allow

Treasury to substitute its opinion for that of the Commission as to what
constitutes injury, Treasury will now have no reason to refer cases,

fo~

example,

where United states industry sees no point in having the reference made.
(Some of you may remember Tlleasury's reference to the Canunission of the 1957
South African
of interest.)
pr~ce

~dboard

case despite our ovm hardboard industry's disclaimer

In addition, closing of some cases where there has oeell prompt

revision with no likelihOOd of future price discrimination will be

facilitated.

- 10 Provision is made in regard to comparisons of similar merchandise
to bring the standards in line with those relating to circumstances
of sale.

In the latter case, the regulations have since 1960 provided

that the primary basis for calculating the comparison is the result of
the differences on the market value of the merchandise rather than the
differences in cost.

In respect of similar merchandise, however, the

regulations had set forth solely differences in cost as the basis for
calculation.

This is now changed so that in both cases the primary

basis relates to effect on market value.
Further amendments provide for publication of an antidumping proceeCl.ing
notice in cases where the complaint is judged to be worthy of consideration,
limitation of notices to individual foreign firms rather than countries
in appropriate instances and possible consolidation of related cases.
The entry into force provision works out as follows:

Cases which are

finally decided prior to January 3, 1965, will have been processed without
reference to the new amendments.

Any case which is not brought to the

attention of the Ccmnnissioner of Customs until January 3, 1965, or any
time thereafter will be handled entirely in accordance with the regulations
as amended.

AB to cases filed before January

3, but still pending on that

date, the new provisions relating to confidentiality of information, quantity
discounts and comparisons of similar information will not apply.

All

other new provisions - for example, those relating to termination of
proceedings - will apply.

In this connection it may be noted that the provis

as to retroactive assessment of dumping duties will work out as follows: As
pending cases where there has been no withholding of appraisement prior to
January 3, 1965, the neVi provision will apply:

dumping duties may not be

assessed on importations entered prior to publication of a withholding
order.

However, should appraisement have been withheld prior

- 11 -

to January J, then,in the event of a dumping finding made thereafter 1
dumping duties would be assessed on unappraised entries under the old
120 day retroactivity provision.
This, in brief - or maybe it has not been so brief - is the substance
of the newly adopted amendments to the regulations under the Antidumping
Act.

For those who wish to study the subject in detail we have prepared

what the charitable organization drive managers call a "kit," which can
be made available on request to the Commissioner of Customs,
D. C. 20220.

\~shington,

It consists of a background memorandum, a comparative print

showing how the adopted amendments differ from those proposed earlier in the
year, a copy of the Federal Register notice, and a copy of the

reL~ations

as they will be in effect on January :3, 1965.
Past experience of appearances before your distinguished organization
has taught me that no group can be more searching in the questions its
members throw at the speaker following a speech.
on this occasion, I do not stand alone.

Fortunately for me,

Beside me is Edvdn F. Rains,

Esquire, Senior Assistant General Counsel of the Treasury Department.
Mr. Rains is one of the select few who knows everything there is to be

lmoVin about Customs.

In addition, he was a principal architect of the

document which is now under discussion.

With him here, every question

There

- 12 -

can, of course, be no guarantee that your advice will be followed.
Your primary interest is that of importers, and while we have always
had the highest regard for your judgment and intelligence, no one
could blame you if you sought the immediate adoption of unrestricted
free trade.

We must consider the needs of importers, but we must

consider the needs of others as well.

Some of these seek limitation

of imports to nothing much beyond coffee and bananas.

They have not

been backvmrd in giving us their views.
The point I want to make is this.
of history in relation to world trade.

We are at a critical period
Trends can be established in

the next few years or even months which will be hard or impossible
to reverse.

Vhat is said and what is done by groups such as yours

can have an influence in guiding or in balancing the direction of these
trends.

It is an awesome responsibility.

shirk it.

000

I do not believe you vall

- 3 -

and exch&nge tenders vi11 receive equal treatment.

Cash adjustments vi11 be made

for differences between the par value of maturing bills accepted in exchange and
the issue price of the nev bills.
The income derived from Treasury bills, whether interest or gain trom the Ale
or other disposition ot the bills, does not have any exemption, as such, and loss

trom the sale or other disposition of Treasury bills does not have a.ny special
treatment, as such, under the Internal Revenue Code ot 1954.

The bills are subject

to estate, inheritance, girt or other excise taxes, whether Federal. or state, but
are exempt from all taxation now or hereatter imposed on the principal or interest
thereof by any state, or any of the possessions of the United states, or by any
local taxing authority.

For purposes o'f taxation the amount ot discount at which

'J.'reasury bills are originally sold by the United states is considered to be interest.

Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954

the amount of discount at which bills issued hereunder are sold is not considered
to accrue until such bills are sold, redeemed or otherwise disposed ot, and such
bills are excluded from consideration as capital assets.

Accordingly, the OWDer

of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such
bills, whether on original issue or on subsequent purchase, and the amount actuaJ.ly
received either upon sale or redemption at maturity during the taxable year tor
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and govern the conditions of their.issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 Bt."fA - MOOIPIED

decimals, e. g., 99.925.

Fractions may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will

be supplied by Federal Reserve Banks or Branches ·on application therefor.
Banking institutions generally may submit tenders for account of customers
provided the names ot the customers are set forth in such tenders.

Others than

banking institutions will not be pennitted to submit tenders except for their
own account.

Tenders will be received without deposit from incorporated banks

and trust companies and from responsible and recognized dealers in investment
securities.

Tenders from others must be accompanied by payment ot 2 percent ot

the face amount of Treasury bills applied for, unless the tenders are accompanied
by an express gua.ra.nty of payment by an incorporated bank or trust company.
Dmnediately a.t'ter the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the Treasury Department of the amount and price range of accepted bids.

Those

submitting tenders will be advised of the acceptance or rejection thereof. The
. Secretary of the Treasury expressly reserves the right to accept or reject any
or a.ll tenders, in whole or in part, and his action in any such respect shsJ.I be
final.

Subject to these reservations, noncompetitive tenders for $ 200,000 or

(k)
less for the additional bills dated

September

17, 1964

(17)
March 1~

ing until maturity date on

1965

, (91

days rema.1n-

(18)

) and noncompetitive tenders tor

(-)

200 eOOO

(2-)

or less for the

182

(a1)

-day bills without stated price from anyone

bidder will be accepted in f'ull at the average price (in three dec1ma.ls) of accepted competitive bids for the respective issues.

Settlement for accepted ten-

ders in accordance with the bids must be made or completed at the Federal
Banks on

December

17, 1964

Reae~

, in cash or other immediately available f'unda or

in a like face amount of Treasury bills maturing

December

17, 1964

-~4(~a~a:)~~-

• cuh

EXhibit 2-A
BETA - MODIFIED
TREASURY DEPARTMENT

Washington
FOR IMMEDIATE RELEASE,

December 9, 1964

The Treasury Department, by this public notice, invites tenders for two series
of Treasury bills to the aggregate amount of $ 2,300, 000 ,000

(2)

December 17, 1964 , in the amount

cash and in exchange for Treasury bills maturing
of $ 2,302

¥if' 000

, or thereabouts, tor

i%"F

, as follows:

December 17, 1964 ,
91 -day bills (to maturity date) to be issued
(S)
=t&f
in the amount of $1,300, 000 ,000 , or thereabouts, represent-

44f

ing an additional amount of bills dated
and to mature

-----,=w=r-:ri---...;..;;;...March 18, 1965

amount of $ 900, 020, 000

September 17, 1964,

=tSF

,originally issued in the

, the additional and original bills

(io)
to be freely interchangeable.
182 -day bills, for $ 1,000,000,000 , or thereabouts, to be dated

Dece;-nber 17, 1964

(13)

(12)

,and to mature

June 17 , 1965

---.,;.....;.;.;;;..;~~(-1~
.. t:)~--

The bills of both series will be issued on a discount basis under competitive
and noncompetitive bidding as hereinafter provided, and at maturity their face
amount will be payable without interest.

They will be issued in bearer form only,

and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and
$1,000,000 (maturity value).
'renders will be received at Federal Reserve Banks and Branches up to the
closing hour, one-thirty p.m., Eastern Standard time,

Monday, December 14. 1964

(16)
Tenders will not be received at the Treasury Department, Washington.

Each tender

must be for an even multiple of $1,000, and in the case of competitive tenders tile
price offered must be expressed on the basis of 100, with not more than three

TREASURY DEPARTMENT

December 9, 1964
FOR IMMEDIATE RELEASE

TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$ 2,300,000,000 pr thereabouts, for cash and in exchange for
Treasury bills maturing December 17,1964, in the amount of
$2,302,756,000, as follows:
91-day bills (to maturity date) to be issued December 17,1964,
in the amount of $ 1-J 300,000,000, or thereabouts", representing an
additional amount 01- bills dated September 17, 1':J64 , and to
mature March 18,1965,
originally issued in the amount of
$900,020,000,
the additional and original bills to be freely
interchangeable.
182 -day bills, for $1,000,000,000, or thereabouts, to be dated
December 17 , 1964,and to mature June 17, 1965.
The bills of both series will be issued on a discount basis under
and noncompetitive bidding as hereinafter provided, and at
naturity their face amount will be payable without interest. They
~ill be issued in bearer form only, and in denominations of $1,000,
~5,OOO, $10,000, $50,000,
$100,000, $500,000 and $1,000,000
[maturi ty value).

~ompetitive

Tenders will be received at Federal Reserve Banks and Branches
Eastern Standard
time, Monday, December 14, 1964.
Tenders will not be
.received at the Treasury De:rartment, Washington. Each tender must
',Ie for an even multiple of $1,000, and in the case of competitive
~tenders the price offered must be expressed on the basis of 100,
·,~·1th not more than three decimals, e. g., 99.925.
Fractions may not
.~e used.
It is urged that tenders be made on the printed forms and
,l:'orwarded in the spec ial enve lopes whic h will be supplied by Federal
~eserve Banks or Branches on application therefor.

"IP to the closing hour, one-thirty p.m.,

Banking institutions generally may submit tenders for account of
provided the names of the customers are set forth in such
;'!nders. Others than banking institutions will not be permitted to
.31lbmit tenders except for their own account. Tenders will be received
'f:Lthout deposit from incorporated banks and trust companies and from
~~sponsible and recognized dealers in investment securities.
Tenders
I~om others must be accompanied by payment of 2 percent of the face
p~ount of Treasury bills applied for, unless the tenders are
l<~companled by an express guaranty of payment by an incorporated bank
)l~ trust company.
~Ilstomers

D-1433

-2-

Commodity

••

Period and

Quantity

of •• rmports as
·••• Unit
Quantity • Nov. 28, 196
·
0

Absolute Quotas:
Butter substitutes containing
over 45% of butterfat, and
butter oil ••••••••••••••••

Calendar Year

Fibers of Cotton processed
but not spun ••••••••••••••

12 mos. from
Sept. 11, 1964

Peanuts, shelled or not
shelled, blanched, or
otherwise prepared or
preserved (except peanut
butter) •••••••••••••••••••

D-1434

1,200,000

Pound

1,000

Pound

12 mos. from
August 1, 1964 1,709,000

Pound

Quota Fill

TREASURY DEPAR'lMENT
Washington
IMMEDIATE RELEASE

D-1434

THURSDAY. DECEMBER 10. 1964

The Bureau of Customs announced today preliminary figures on imports for consumption of the following commodities from the beginning of the respective quota
periods through November 28, 1964:

Commodity

·•
·

Period

am Quantity

•• unit of • ImPorts as of
• Quantity •• Nov. 28, 1964j

Tariff-Rate Quotas:
Cream, fresh or sour •••••••••

Calendar Year

1,500,000

Gallon

829,815

Whole Hilk, fresh or sour ••••

Calendar Year

3,000,000

Gallon

Cattle, 700 lbs. or more each
(other than dairy cows) ••••

Oct. 1, 1964 Dec. 31, 1964

120,000

Head

18,2S7

12 mos. from
Cattle less than 200 lbs. each April 1, 1964

200,000

Head

52,466

Fish, fresh or frozen, filleted, etc., cod, haddock,
hake, pollock, cusk, and
rosefish •••••••••••••••••••

Calendar Year

24,861,670

Pound

Quota Filled

Tuna Fish ••••••••••••••••••••

Calendar Year

60,911,B70

Pound.

42,801,114

White or Irish potatoes:
Certified seed •••••••••••••
Other ••••••••••••••••••••••

12 mos. from
Sept. 15, 1964

114,000,000
45,000,000

Pourrl
Pound.

24,538,680
Quota Filled

Knives, forks, and spoons
with stainless steel harxiles

Nov. 1, 1964 Oct. 31, 1965

69,000,000

Pieces

30,841,197

TREASURY DEPAR'lMENT
Washington
IMMJIDIATE RELEASE
THURSDAY. DECEMBER 10, 1964

D-1434

------

The Bureau of Customs announced today preliminary figures on imports for conof the following commodities from the beginning of the respective quota
periods through November 28, 1964:
s~tion

Commodity

·••
·

Period

Quantity

or •• Imports as of
·••• unIt
Quantity •• Nov. 28, 1964

Tariff-Rate Quotas:
Cream, fresh or sour •••••••••

Calendar Year

1,500,000

Gallon

829,815

Whole loulk, fresh or sour ••••

Calendar Year

3,000,000

GaJ.lon

Cattle, 700 1bs. or more each
(other than dairy cows) ••••

Oct. 1, 1964 Dec. 31, 1964

120,000

Head

18,287

12 mos. from
Cattle less than 200 Ibs. each April 1, 1964

200,000

Head

52,466

Fish, fresh or frozen, filleted, etc., cod, haddock,
hake, pollock, cusk, and
rosefish •••••••••••••••••••

Calendar Year

24,861,670

Pound

Quota Filled

Fish ••••••••••••••••••••

Calendar Year

6O,911,870

Pound

42,801,114

12 mos. from
Sept. 15, 1964

114,000,000
45,000,000

Pown
POuM

24,538,680
Quota Filled

forks, and spoons
Nov. 1, 1964 with stainless steel handles Oct. 31, 1965

69,000,000

Pieces

White or Irish potatoes:
Certified seed •••••••••••••
Other ••••••••••••••••••••••
~ves,

30,841,197

-2-

Commodity

••
••

Period

and

Quantity

: Unit of : ImPorts as of
: Quantity: Nov. 28, 1964

Absolute Quotas:
Butter substitutes containing
over 45% of butterfat, and
butter oil................
Fibers of Cotton processed
but not spun ••••••••••••••
Peanuts, shelled or not
shelled, blanched, or
otherwise prepared or
preserved (except peanut
butter) •••••••••••••••••••

D-1434

1,200,000

Pound

1,000

Pound

August 1, 1964 1,709,000

Pound

Calendar Year

Quota Filled

12 mos. from
Sept~

11, 1964

12 mos. from

Quota Filled

TREASURY DEPARTMENT

WASHINGTON

IMMEDIATE RELEASE

THURSDAY, DECEMBER 10, 1964

0-1435

The Bureau of Customs has announced the following preliminary
figures showing the imports for consumption from January 1, 1964,
to November 28, 1964, inclusive, of commodities under quotas
established pursuant to the Philippine Trade Agreement Revision
Act of 1955:

Commodity

··
·
·•

Established Annual
Quota Quantity

·
··
•
•
•

Unit of
Quantity

: Imports
as of
:November 28, 1964

••

Buttons ••••••••

680,000

Cigars •••••••••

160,000,000

Number

12,160,119

Coconut oil ••••

358,400,000

Pound

Quota Filled

Cordage ••••••••

6,000,000

Pound

5,985,~)6

Tobacco ••••••••

5,200,000

Pound

4,101,989

-:l-Imports through December 1, 1964

Gross

235,555

TREASURY DEPARTMENT
WASHINGTON

IMMEDIATE RELEASE
THURSDAY, DECEMBER 10, 1964

D-1435

The Bureau of CUstoms has announced the following preliminary
figures showing the imports for consumption from Januar,y 1, 1964,
to November 28, 1964, inclusive, of commodities under quotas
established pursuant to the Philippine Trade Agreement Revision
Act of 1955:

Commodity

·:
·
·•

Established Annual
Quota Quantity

·
·

Unit of
Quantity

:
•

: Imports
• as of

·:November 28, 1964
·•

Buttons ••••••••

680,000

Cigars •••••••••

160,000,000

Number

12,160,179

Coconut oil ••••

358,400,000

Pound

Quota Filled

Cordage ••••••••

6,000,000

Pound

5,985,536 *

Tobacco ••••••••

5,200,000

Pound

4,701,989

*Imports through December 7, 1964

Gross

235,555

-2-

Iff

COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: PrOVided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3116 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
Es tablished
TOTAL QOOTA

Country of Origin
United Kingdom ••••••••••••
Canada .....................

France ••.•••.•••.•....•••.

India and Pakistan ••••••••
Netherlands •••••••••••••••
Switzerland •••••••••••••••
Belgium •••.....•.....•.•••
Japan •.•...•...•......••••

China •••••••••••••••••••••
Egyp t ••••••••.••••••••••••

Cuba •••••••••.••••••••••••
Germany •••••••••••••••••••
Italy .........•...•..•.•.•

4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263

:
Total Imports
: Sept. 20, 19 6~ to
: Dec. 7, 1964

Established
33-1/3% of
Total Quota
1,441,152

239,393
75,807

43,264
22,747
14,796
12,853

25,425

25,443
7,088

308,082

1,599,886

Other, including the U. S.
5,482,509

Included in total imports, column 2.
-

-- -

.. L _

D .... _ _ ......

"oF

r ... e~ ...... mC!_

Imports
Sept. 20, lcfo4
to Dec. 7, 1964

TREASURY DEPAR1Hm'l'

Washington, D. C.
IMMEDIATE RELEASE

THURSDAY, DECEMBER 10,1964

D-1436

Prel.1m1n.a.ry data on imports for consumption of cotton am cotton waste chargeab1e to the quotas established b)"
Presidential Proclamation No. 2351 of September 5, 1939, as amemed, ani as modified by the Tariff Schedul.e8 of the
United States which became effective August 31, 1963.
(The country designations in this press release are those specified in the appeDi1x to the Tariff Schedul.es of the
United States. There is no political connotation in the use of outmlded names.)

"
Count17 of Origin

EgJpt and Sudan ••••••••••••
Peru •••••••••••••••••••••••
Imia and Pakistan •••••••••
China ••••••••••••••••••••••
Mazico •••••••••••••••••••••
BJ-asil ••••••••••••••• e' • • • • •
Union of Sonet
Socialist Republics ••••••
Argent~ •••••••••••••••••

Haiti ••••••••••••••••••••••
ECuador ••••••••••••••••••••

Established Quota

Imports

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723

Country of Origin

EatabJ 1 shed Quota

Honduras ••••••••••••••••••••

871

Colombia••••••••••••••••••••

124
195
2_240

Iraq ••••••••••••••••••••••••

1,785,924

475,124
5,203

~I
SiI

2.37

9,333

EJtcept Barbados, Bersda, Jamaica, Trinidad,
EJtcept Nigeria and Ghana.

British East Africa •••••••••
lrdonesia and Netherlallls
Hew Guinea••••••••••••••••
British W. Indies •••••••••••
.lger.1a•••••••••••••••••••••
British V. Africa. ••••••••••
other. 1m1ming the U.s ....

Tobago.

Cotton 1-Usn or JIOre
Established Iear&r Quota - 45.656.420 1bs.
Imports Auguat 1. 1964 - December 7, 1961,
staple Length
1-3/8ft or IIIIDre

All!!cation

1-5/32" or DlDre aid UDder
1-;J/Stt (Tangui.s)
1-l/Stt or

IIDre

aDd UDder

QRLiI_C:Sc;a:;;cz

C¢"'i'T

959

S:47

.(~6

1tJ'~C)fo'ril5

"'IE

-.::

~ ..................

::A:""""C~.

l!!ports

39. 590. 718

39,590,778

1..500.000

9,665

~_~->< ..-~~~~'i,,'C - ~"

__._1 3 ' .

752

Par~ ••••••••••••••••••••

-."..

_--=a-::::!k:

' s : - ....... QI~<:t..--~-3

?_1',R_7~~

7l.J88
2l.J21

5.m

16.0Q4.

!ervn:!zs

TREASURY DEPAR'1HEm
Washington, D. C.

":14 . ~

DMmIATE RELEASE

THURSDAY, DECEMBER 10,1964

D-1436

Prel.illi.nary data on imports for consumption of cotton am cotton waste chargeable to the quotas established by
Presidential Proclamation No. 2351 of September 5, 1939, as amemed, am as modified by the Tariff Schedules of the
United States which became effective August 31, 1963.
(The country designations in this press release are those specified in the appeo::lix to the Tariff Schedules of the
United States. There is no political connotation in the use of out.D:k1ed names.)
(in poUDis)
harsh lDXier 'u J.n

Country

Origin

Established Quota

EgJpt and Sudan ••••••••••••
C~ ••••••••••••••••••••••

Mezico •••••••••••••••••••••
Brasil •••••••••••••••••••••
Union of Sonet
Sociallat Republics ••••••

1,735,924

Y Except Barbados, Benuia.
2/ Except Nigeria and Ghana.

~I
g

DPrta

752

Par~ ••••••••••••••••••••

871

Colombia ••••••••••••••••••••

124

Iraq ••••••••••••••••••••••••
British East Africa •••••••••

475,l24
5,203
237
9,333

Argent~ •••••••••••••••••
Haiti ••••••••••••••••••••••
Ecaadar ••••••••••••••••••••

Established Quota

Honduras ••••••••••••••••••••

783,816
2A7,952
2,003,483
1,370,791
8,883,259
618,723

Peru •••••••••••••••••••••••
India and Pakistan •••••••••

Country of Origin

Imports

195

2.240

IDionesia and NetherlaRis
Hew Guinea ••••••••••••••••
British W. Indies •••••••••••
R1ger1a ••••••••••••• o • • • • • • •
Britiah V. Africa. ••••••••••
Other. including the U.s ....

71.388
2l.J21
5.3'n
16.004.

Jamaica. Trinidad, ao:i Tobago.
Cotton l-lIen or more
Established Yearly Quota - 45.656.429 lbs.
Imports Auggt 1. 1964 - December 7, 1961,
St.apl.e Length
1.-3/sn or more
1.-5/32" or IIIDre and under

1-3/sn

(Tangds)

:l.-UBn or DDre aDIl 'Ulder

"L~""

'-.«!'_.L.. -

",--~

....._~:._-..-::~.,

X:a.~~2:&SO
.'~'>

• • q'T

---~-

=9'5"
.,~~

1151:'

--......:

"""£

39,590,778

1.SOO.000
4..565.642
__ .:_____

9,665

~ .... ~

'"*" ........ *-.v

---~~·-~~-1

.""*aM1 .... c:.> eae/T

T!'P9rts

39.590.778

2,1LB,733

-===---~~---=--=:=";i.

.....-:a:::!ii* ........ "W

~~(:r

Ci2"'Y-95'9-S;"

Al1gsatiOD

~""''E:-~~

-~~<SC!Qii&:i:I

poqCl~~c.o:.q

'U0Cii"':i0~-0!'::j

-~ .........

-.,...- ... -~--

----

-2-

COTl'ON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
'..JASTE, LAP WASTE. SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OmERWISE
ADVANCED IN VALUE: Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries: United Kingdom, France. Netherlands,
Switzerland, Belgium, Germany, and Italy:

Country of Origin
United Kingdom ••••••••••••
Canada •••••••••••••••.••••

France .•.••.•.......•.••..

India and Pakistan ••••••••
Netherlands •••••••••••••••
Switzerland •••••••••••••••
Belgium ••.........•..•••••
Japan •.•...••.........•..•
Ch ina ••.....••........••••
Egyp t ••••••••.••••••••••••

Cuba ••••••••••••••••••••••
Ge rmany •••••••••••••••••••

Italy .........•...•.......

Es tab l i shed
TOTAL QOOTA

4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263

:
Total Imports
: Sept. 20, 19 6~ to
: Dec. 1, 1964

Established
33-113% of
Total Quota

1,441,152
239,393
75,807
43,264
22,747
14,796
12,853

25,425

25,443
7,088

308,082

1,599,886

Other, including the U. S.

5,482,509

11 Included in total imports, column 2.
Prepared in the Bureau of Customs.

Imports
Sept. 20, 1964
to Dec. 1, 1964

TREASURY DEPARTMEN'l'

-' .1 Q

Washington, D. C.

D-1437

1}.f.{EDIATE RELEASE

THURSDAY ,DECEMB~~fi~TA ON IMPORTS FOR CONS1.JMPTION

01' UNldANUFACTURED LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED
BY PRESID1'NTIAL PROCLAMATION NO. 3257 or SEPTEMBF.R 22, 1958, AS MODD'IED BY 'J'HE TARI~F SCHEDULES or '!'HE
uNIT)i;D STATES, WHICH BlCAME EITFCTIVE AUGUST 31, 1963.

OUAR'l'BRLY QUOTA PERIOD IMPORTS ITW 925.01-

Country

Le~-bearlDg

1, 1964 -

October 1,

1964 -

December

31, 1964
1964

December 4,

ITEM 925.03-

orea

and materiab

ProduotiGIl

October

UDrJ'ought lead aM
leacl waste and scrap

••
,
I
I

(or as noted)

ITEM 925.02-

Zilw-beariDg orea and.
materials

ITEM 925.04-

•• UmrJ'ought ziDo (exoept

: .r
:

all~e

zlno aad zinc duat) and
zinc wast. Ul4 sera,

lDIporta

AutJ'alia

11,220,000

1l,220,000

22,540,000

16,584,685

Bel.gilB and
WxaDburg (total)

Bol1rla
Ca.aa4a

5,040,000

···3,464,625

13,....0,000

···3,422,176

15,920,000

15,~20,OOO

66,480,000

Italy

So. AtJ'i.

16,160,000

-s••

2~,8",863

2~,802,54~

70~,OOO

44,025,~23

6,320,000

4,126,410

12,880,000

···8,821,O~2

35,120,000

20,684,30.

3,700,000

···:h15~,234

5,440,000

"·5,438,841

6,080,000

··-6,077,"8

14,880,000

lA,8BO,000

15,760,000

yugoslarla
All other
oountries (total)

37,840,000

36,880,000

Republio of the Co,.,o
(formerly Belgian Congo)

--un.

···5,168,425

3,600,000

Wexioo

Pen

7,520,000

···3,831,788

6,560,000

Part 2, Appendix to Tariff
"Republio of South Afrioa.
···X-port. &. of D•••• b.r 7. 1964.

S~hedules.

PlU:PDED IN TID: B'UREAU O:r CUSTCM3

6,080,000

···',70,,~02

···3,66~,16tl 17,840,000
AI AdJu.~_d figure

17,840,000

TREASUKI DEPARTMENT

WalhiDgton, D. C.

nt.{EDIA TE RELEASE

4°~

D- 14 3 7

THURSDAY ,DECEMB~~ftnATA ON IMPORTS FOR CONSl'MPTIC'N

or UNlrIANUFACTURED LEAD AND ZINC CRARGtABLE TO THE QUOTAS ESTABLISHED
BY PFESIDtNTIAL PROCLAMATION NO. 3257 OF SEPTEMBF.R 22, 1958, AS MODITIED BY THE TARI:c'f SCHEDULES Cf 'I'HJ:
uN!Tli;D STATES, WHICH BECAME ETrF,CTIVI: AUGUST 31, 1963.
OUJ.R'l'uu,y

QU~

PERIOD IMPORTS -

IT».i 925.01.

October 1, 1964 - De:ember 31, 1964'
October 1, 1964 - December 4, 1964 (or as noted)

ITEM 925.03·

•
I

Leai-beariDg oree
and 111&teriall

Coutry
d
Proc1.uotion

u.rought lead ....
lead waste &Del .crap

ITEM 925.04.

ITEM 925.02.

ZiD.e-bearing ores au.
material.

I
I
I

u.rrougbt ziDo (exoept a11C1J.
ef zino and zinc clWl t) and
zinc WAste aDA •

.ra,

Imports

1l,220,000

..lutral1a

5,040,000

···3,464,625

13,440,000

···3,422,176

Bol1ria

Canaa.

11,220,000

22,540,000

15,920,000

16,584,685

66,480,000

15,920,000

66,480,000

···5,168,425

37,840,000

29,89),863

3,600,000

Italy

Werteo
16,160,000

Peru

16,160,000

36,880,000

29,802,549

70~,000

44, 02 5,923

6,320,000

4,126,410

12,880,000

···8,821,092

35,120,000

20,684,)04

3,760,000

···3,159,2)4

5,.440,000

···5,438,847

6,090,000

"·6, 077, S68

IUIpubl10 of the CoDCo
(formerly Belgian Congo)
."Uu. So.

7,520,000

~oa

14,980,000

14,880,000

15,760,000

yugoslaT1a
..ll1 other

oountries (total)

6,560,000

"·3,831,788

.See Part 2, Appendb to Tariff Sohedules.
••Renublic of South Afrioa.
···lapor\s as ot D•••• ber
PREP~

"IN 'l1D: BUREAU

l~64.

CUSTCMS

6,080,000

••• 9,709,902

···3,669.1611

!I AdJus~.d

17,840,000

figur •

17,840,000

FOR REU.lSE A.n. N~'£i>APEn.s,
'l'wtada,yt December 15, 1964,

n.o-ber 14, 1964

l1i5Sl'LTS OF TREASURY'S WEEKLY a"LL om.atJG

The 'masury Department announced. last eYel'dr!g that t.he teDden tor two ..ri.. fa
1'reaSUJ7 billa, one 8 ...i •• to be an adclitianal 1uue of the bill. dated 8epteber 11,~
1964, and the othftr aeries \0 be dated December 17, 1964, 1Ib1oh .... ofleNcl _ ~
9, ~ere opened at; the federal It._rYe Banks ora n.c-ber 14. 'renden ..... 1Jw1W,.
$1,)10,000,::)')0, or tllereabout8, ot 91-dq bUll and for ~';1,OOO,OOO,OOO, or ..~
of 182-day bUls. The detaUa of the two series are .. tollowa,

•

91-dq 1'reuury btU,

RAJf<F ) f ACC;;P'F'D
C()4'pi,T~'i.'rV~: BT ti,;:).

lI&\uring ~arch

18, 1 .

•

high

:
I

I..ov

Ayer~~e

Excepting two t.eDdere total1ng :~600,ooo
'39 percent of the auount of 9l-da7 bU' a bid tor at tiw low prt_ v.. ....,w
57 percent o,f the DOunt. of 182-dq bUla bid far at the lOll pri_ " .. __pMd
TOTAL

TF.~iili:RS

Ar:PLIED FOR ANn

r'iat.rict.

Boston
}lin York:
Phlladelpru.a

Cleveland
;-,1chrnond
Atlanta
Ch1c~o

st. Louis
1{1n.neapolie

Kansas City
Dallas
San 'Francisco

TarALS

A:C~?T..:D

A,£21iec1 For
!t hO,659,OOO

1,679,168,000
)6,517,000
34,)02,000

BY F" DFAAL HES RVE DIstarcm.

AcoeE1ied
~

40,659,000
787,n8,OOO
21,S1'7,000

34,302,000

•
I

1,~,O31,OOO

I
I

42,709,000

lS,48h,OOO

•

16,672,000
JS, 2;7, ::>00

16,672,JOO
)0,65),:)00

2)9, '100,100

159,Olt,OOO

31,415,000
20,749,)00
30, ~;oo,ooo
37,1,4, (Y.)()

89,695,~m

)'>,415,000
21,359,000
~,))o,ooo

)9, 76h J )()Q

1l4,S25,IXlQ
'::2,)2),678,000

'EI

$l,)OO,OS2,OOO

Ae.e11ecl For
$ .,173,000

8,629,000

U,99),OOO

167,216,000
1),8$3,000
9,617,000

Aa_t
• ,11',_
iled

680,111,.

),-,u,m,,.
27,HIa,0I

12,Olli,CI

.,116,01

12;li".
e 61,0(

15,201,000

12,m,lI.

In I 179.000

122.W ..1,oao,IA,Cl

12,7S1,OOO

$2,091,1~,OOO

U,JIl,OC,

Includes $2"/5,60),000 nonc~t.it1ve tenders acc.p~d at the average pr10e of 99.01'
!J'1cluctes !112,411,OOO nonC(IIlf4'UUft tenders accept.ocl at the anrage priM of
~ an a coupon iS8ue of the same length and for the . . . .aount 1llft'tecl, tbe
t'-e. bills would provide yields of 3.96~, for the 91-dq bl11a, .... b.1~, , . U
1B2-c1ay bUls. Int-ereet rates an billa are quo\.ed in tenn.a or 11&1*
vitia t
t,}1..e retum relr.t.ed
toIle face aaount. of the (1111s pqable at ..t.UI"U., ........ ---,
the amount invested and tJ.eir length in actual nWllber of dQa related \0 • )60 ...
year. In contrut, yielda an certtficatu, note_, and bonda .... oa.puW 18 ~
of interest on the amount invested, and mate toh. nuaber of cIaTa
intereat payment. period t? tv... actual nUlllber 'jf daya 1ft the peri.04.
oompounding if more than one co:pon per1~ 18 1nvo1y~d.

,.,.fS
,.wn.

".i

U.""

".,S.'I\I 18.

vi'" ..." =7

TREASURY DEPARTMENT

FDR RELEASE A.H. NEWSPAPERS,
~eBday, December 15, 1964.

December 14, 1964

RF,sU1l'S OF TREASURY'S WEEKLY BILL OFFERING

The Treasury Department announced last evening that the tenders for two series of

' ...s~ bills, one series to be an additional issue of the bills dated September 17,
1~19i, and the other series to be dated December 17, 1964, which were offered on December
-it were opened at the Federal Reserve Banks on December 14. Tenders were invited for
$1,300,000,000, or thereabouts, of 91-day bills and for $1,000,000,000, or thereabouts,
~ of 182-day bills.
The details of the two series are as follows:
~~QE OF ACCEPTED

~ QIIP~TITIVE BIDS:

High
Low
Average

91-day Treasury bills
maturing March 18, 1965
Approx. Equiv.
Price
Annual Rate
99.029 a/
3.841%
99.019 3.851%
99.023
3.864% bI

182-day Treasury bills
maturing June 17, 1965
Approx. Equiv.
Price
Annual rlate
98.004
3.948%
97.991
3.974%
97.996
3.965% bI

a/ Excepting two tenders totaling $600,000

39 percent of the amount of 91-day bills bid for at the low price was accepted

57 percent of the amount of 182-day bills bid for at the low price was accepted

TOTAL

TENDERS APPLIED FDR AND ACCEPTED BY Fr:DERAL

liJistrict
.Qston
llew York
_i1adelphia
£leveland
liichmond
.1anta
.icago
lit. Louis
lMinneapolis
IKansas City
p'al.las
,.san Francisco

Applied For
40,659,000
$
1,679,168,000
36,517,000
34,3 0 2,000
16,672,000
35,297,000
239,700,000
35,415,000
21,359,000
30,500,000
39,764,000
114,525,000

TOTALS

$2,323,878,000

RES~·,RVE

DISTltiCTS:

Applied For
Accepted
$
24,173,000
40,659,000
$
1,604,031,000
787,718,000
8,829,000
21,517,000
42,709,000
34,302,000
11,995,000
16,672,000
15,4Bu,000
30,653,000
167,216,000
159,01e,000
13,853,000
31,415,000
9,677,000
20,749,000
15,207,000
30,SOO,000
12,751,000
37,154,000
171
89,695,000
Z179,2000
$1,3 00 ,052,000 ~ $2,097,104,000

Accepted
$
24,173,000
680,721,000
3,829,000
27,994,000
11,995,000
12,034,000
84,216,000
12,353,000
8,462,000
12,707,000
12,321,000
1091.449 1. 000
$1,000,254,000

mcludes $275,603,000 noncompetitive tenders accepted at th8 average price of 99.023
rndudes $112,471,000 noncompetitive tenders accepted at the average price of 97.996
~ a Coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 3.96%, for the 91-day bills, and 4.10%, for the
182-day bills. Interest rates on bills are quoted in terms of bank discount with
~he return related to the face amount of the bills payable at maturity rather than
the amount invested and their length in actual number of days related to a 360-day
year. In contrast yields on certificates, notes, and bonds are computed in terms
of interest on the' amount invested, and relate the number of days remaining in an
interest payment period to the actual number of days in the period, with semiannual
comPounding if more than one coupon period is involved.

D..1438

-' C r)

December 14, 1964

FOR IMMEDIATE RELEASE

TREASURY ANNOUNCES SCHEDULE
FOR NEXT REGULAR WEEKLY BILL AUCTION

The Treasury announced today

tha~

its next regular weekly

bill auction will be held on Friday, December 18, instead of
-{l

•

~~~

the following Monday., The Treasury said the scnedule was
,

~"-I/,' ;~(1lu(lt41At

:'Ul,,{ -1.(/,'''': f '

advanced to assure ample ti~'during the -pre~1ioriday season.
Delivery of the $1.2 billion of 3-month bills and $1.0 billion
of 6-month bills will be made on the normal day, Thursday,
December 24.

TREASURY DEPARTMENT
(

December 14, 1964
FOR IMMED IA TE RELEASE

TREASURY ANNOUNCES SCHEDULE
FOR NEXT REGULAR WEEKLY BILL AUCTION

The Treasury announced today that its next regular
weekly bill auction will be
of the following Monday.

~eld

on Friday, December 18, instead

Delivery of the $1.2 billion of

3-month bills and $1.0 billion of 6-month bills will be made on
the normal day, Thursday, December 24.

The Treasury said the

auction was advanced to assure ample time between the auction
and delivery during the pre-holiday season.

000

D-1439

- 3 -

and exchange tenders will receive equal. treatment.

Cash adjustments will be made

for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sal.
or other disposition of the bills, does not have any exemption, as such, and 10s8
from the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code of 1954.

The bills are subjec'

For purposes of taxation the amount of discount at which

Treasury bills are originally sold by the United states is considered to be interest.

Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954

the amount of discount at which bills issued hereunder are sold is not considered
to accrue until such bills' are sold, redeemed or otherwise disposed of, and such
bills are excluded from consideration as capital assets.

Accordingly, the owner

of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for sucb
bills,' whether on original issue or on subsequent purchase, and the amount actuall
received either upon sale or redemption at maturity during the taxable year tor
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, pre·
scribe the terms of the Treasury bills and govern the conditions of their.issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 -

decimals, e. g., 99.925.

Fractlons

not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will

be supplied by Federal Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of customers
provided the names of the customers are set forth in such tenders.

others than

banking institutions will not be permitted to submit tenders except for their
own account.

Tenders will be received without deposit from incorporated banks

and trust companies and from responsible and recognized dealers in investment
securities.

Tenders from others must be accompanied by payment of 2 percent of

the face amount of Treasury bills applied for, unless the tenders are accompanied
by an express guaranty of payment by an incorporated bank" or trust company.
Dmnediately a.:f'ter the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the Treasury Department of the amount and price range of accepted bids.

Those

submitting tenders will be advised of the acceptance or rejection thereot.

The

secretary of the Treasury expressly reserves the right to accept or reject &Il1
or all tenders, in whole or in part, and his action in any such respect shall be
final.

Subject to these reservations, noncompetitive tenders for

less for the additional bills dated

Ma.rc\Et

1ng until maturity date on

$200~OOO
(~O)

or less for the

sePtembe::fJ.t! 1964

182

{i4

1965

, (

$2W

days remain-

=tl&t

) and noncompetitive tenders for

-day bills without stated price from snyone

bidder will be accepted in full. at the average price (in three decimals) ot
cepted competitive bids tor the respective issues.

&e-

Settlement for accepted ten-

ders in accordance with the bids must be made or completed at the Federal ReserR
Banks on

December~ 1964

, in cash or other immediately available funds or

in a like face amount of Treasury bills maturing

December 24

(23'

1964

•

Cash

TREASURY DEPARTMENT
Washington
December U, 196,

FOR IMMEDIATE RELEASE,

TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders for two serie
of Treasury bills to the aggregate amount of $ 2.200-m..000 , or therea.bouts,

tOll

cash and in exchange for Treasury bills mat'\lring December 24, 1964 , in the &mOm

of $ 2,202tl},000 , as follows:

91 -day bills (to maturity date) to be issued DeCember:ft;. 1964

:w-

in the amount of

$ l,200~,000 , or thereabouts, represent-

ing an additional amount of bills dated September 24, 1964 ,

{Sf
and to mature

March

amount of $ 900,644,000

1965 .

,originally issued in the

,the additional and original bills

( 1&)
to be freely interchangeable.
182 -day bills, for

l,Ooo~ooO

DeCembe~ 1964

, or thereabouts, to be dated

, and to mature

June 24~

•

The bills of both series will be issued on a discount basis under competitlv(
and noncompetitive bidding as hereinafter provided, and at maturity their face
amount. will be payable without interest.

They will be issued in bearer form only

and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and
$1,000,000 (maturity value).
i'enders will be received at Federal Reserve Banks and Branches up to the
closing hour, on":!-thirty p.m., Eastern Standard time, Friday, December lS, 1964

fiSf

Tenders will not be received at the Treasury Department, Washington.

Each tender

must be for an even multiple of $1,000, and in the case of competitive tenders tb
price offered must be expressed on the basis of 100, with not more thaD three

TREASURY DEPARTMENT

December 14, 1964

FOR IMMEDIATE RELEASE
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$2,200,OOO,000,or thereabouts, for cash and in exchange for
Treasury bills maturing December 24, 1964, in the amount of
$2,202,045,000, as follows:
91-day bills (to maturity date) to be issued December 24,1964,
1n the amount of $1,200,000,000, or thereabouts~ representing an
additional amount of bills dated September 24,1 'J64 , and to
mature March 25,1965,
originally issued in the amount of
$900,644,000i the additional and original bills to be freely
interchangeab e.
18~day

bills, for $1,000,000,000, or thereabouts, to be dated
June 24, 1965.

December 24, 1964, and to mature

The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided, and at
maturity their face amount will be payable without interest. They
will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000
(maturi ty value).
Tenders will be received at Federal Reserve Banks and Branches
up to the cloSing hour, one-thirty p.m., Eastern Standard
time, Friday, December 18, 1964.
Tenders will not be
received at the Treasury De~artment, Washington. Each tender must
be for an even multiple of $1,000, and in the case of competitive
tenders the price offered must be expressed on the basis of 100,
with not more than three decimals, e. g., 99.925. Fractions may not
be used. It is urged that tenders be made on the printed forms and
forwarded in the special envelopes which will be supplied by Federal
Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of
customers provided the names of the customers are set forth in such
tenders. Others than banking institutions will not be permitted to
submit tenders except for their own account. Tenders will be received
Without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
D-1440

- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, followin~ which public
announcement will be made by the Treasury Department of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $ 200,0000r less for the additional bills dated
September 24)1964~91-days remaining until maturitr date on
March 25, 19~5)
and noncompetitive tenders for ~ 200,000
or lese for the 182-day bills without stated price from anyone
bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids for the respective issues.
Settlement for accepted tenders in accordance with the bids must be
made or completed at the Federal Reserve Banks on December 24, 1964,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing December 24, 1964Cash and
exchange tenders will receive equal treatment. Cash adjustments
will be made for differences between the par value of maturing
bills accepted in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject to
estate, inheritance, gift or other excise taxes, whether Federal or
State, but are exempt from all taxation now or hereafter imposed on
the prinCipal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to be
interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills are
sold, redeemed or otherwise disposed of, and such bills are excluded
from conSideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued he reunde 1
need include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this
notice prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained fr
any Federal Reserve Bank or Branch.
000

TREASURY DEPARTMENT

December ~ 1964

FOR IMI>1EDIATE RELEASE
ERNEST C. BETTS, JR. NAMED DEPUTY
ASSISTANT SECRETARY FOR ADMINISTRATION

.//<-.-'11 ~--uI~

"yt.--

The Treasury Department today announced the designation of Mr. Ernest c.
Betts, Jr., effective December ~, 1964, as Deputy Assistant Secretary for
Administration. He will assist the A'Cm!:nisbzabloe Assistant Secretary ~Jtt'
the discharge of his responsibilities and will serve concurrently in his
present position as Director of the Department's Office of Budget and Finance.
Mr. Betts has had 26 years of service in the Federal Government in a
number of progressively responsible administrative positions in various
agencies, prinCipally Agriculture, State, and Treasury. He is
j
1!te'the only career official.to have served both as the Director of Personnel
and the principal budget officer of different executive departments. He
also served overseas as the Attache for Administration for the U.S. Embassy
at Beirut.

be... .8

~~. Betts was born in Wisconsin in 1914. He attended Platteville State
Teachers College and Vernon County Teachers College and was a teacher and
principal in rural and elementary schools in Wisconsin before entering the
Government Service in 1939.

Mr. Betts has maintained an active interest in education and civic
affairs. He is a former member of the Arlington County School Board and a
former PTA President, and has been active in several professional management
organizations, church affairs, and the Boy Scouts. He recently received the
Treasury Department's Meritorious Service Award for his work as Director of
the Office of Budget and Finance.
Mr. and Mrs. Betts have three children and reside at 815 South 26th
Street, Arlington, Virginia.

<./

)
-

ilL; ,

TREASURY DEPARTMENT

FOR IMMED IA TE RELEASE
ERNEST C. BETTS, JR. NAMED
DEPUTY ASSISTANT SECRETARY FOR ADMINISTRATION
The Treasury Department today announced the designation of
fu. Ernest C. Betts, Jr., effective December 15, 1964, as Deputy
Assistant Secretary for Administration. He will assist the
Assistant Secretary for Administration in the discharge of his
responsibilities and will serve concurrently in his present position
as Director of the Department's Office of Budget and Finance.
Mr. Betts has had 26 years of service in the Federal Government
in a number of progressively responsible administrative positions
in various agencies, principally Agriculture, State, and Treasury.
He is the only career offic ial known to have served both as the
Director of Personnel and the principal budget officer of different
executive departments. He also served overseas as the Attache for
Administration for the U. S. Embassy at Beirut.
Mr. Betts was born in Wisconsin in 1914. He attended
Platteville State Teachers College and Vernon County Teachers
College and was a teacher and principal in rural and elementary
schools in Wisconsin before entering the Government Service in
1939.
Mr. Betts has maintained an active interest in education and
:ivic affairs. He is a former member of the Arlington County
khool Board and a former PTA Pres j den t, and ha s been ac t i ve in
several professional management organizations, church affairs, and
the Boy Scouts. He recently received the Treasury Department's
1eritorious Service Award for his work as Direc tor of the Office
)f Budge t and Finance.
Mr. and Mrs. Betts have three children and reside at

liS South 26th Street, Arlington, Virginia.

000

D-144l

W'e'

exempL from all tnxation now or

h~reaftcr

:tmposcd on the principal or interest

Lltereof uy ru1y state, or :;Iny of the ponocssions of the Un:lted States, or by any
locnl tax.i.nr: auLhorlty.

For purposcD of blxat:ion t.he amount of discount at which

'rreusury 'bills nrc originally sold by the United States is considered to be interest.

Uncler Sections 4:54 (b) and 1221 (5) or the Internal Revenue Code of 1954

the nmount of discount at \-Thich bills issued hereunder are sold is not considered
to accrue until such bills arc sold, redeemed or otherwise disposed of, and such
bills nrC' c;:cludul from conGj('iPrat i.on an

Cql i tal a...;~~eto.

Accordingly, the owner

or 'l'rcamu-y b:LUs (othcl'[.lp.l.n life .Lnmu·ancc companies) issued hereunder need includc 1n his incomc ta.'C return only the difference betvreen the price paid for such
bills, ,",hether on oriGinal l,,[;uC' or on Gllbsequcnt purchase, and the mnount actual]
rcceived either upon sale or redemption at maturity durinG the taxable year for
Hhlch the return is made, ar; ord ino.ry en-in or loso.
'llreasury Department Circular No. 4:18 (current revision) !IDd this notice, pre-<
scribe the term::: 01' thc Treasury bills ond govern the conditions of their issue.
Copies of the circu.lar may be obtained from any Federal Reserve Bank or Branch.

- 2 -

banking insti tutiono will not be penn.l t-Led to subnrt t tenders except for their own

a.ccount.

Tenders ,.nIl be received

vr.~ thout

deposit from incorporate.d banks and

trust companies and from responsible and recognized dealers in investment securities.
: Tenders from others must be accompanled by payment of 2 percent of the face amount
of Treasury bills applied for, unless the tenders are accompanied by an express
guaranty of payment by an incorporated banl\. or trust company.
Inunediat~ly

after the closing hour, tenders will be opened at the Federal Re ..

serve Banks and Brunches, follmdnr; lThich public announcement will be made by, the
T~asury

Department of the Dmount and. price range of accepted bids.

ting tenders "rill be advised of the acceptance or rejecLion thereof.

'l'hose submit.The . SeclIetai("j'

of'the '£reasury e;"'Pressly reserves the ric;htto ncccpt or reject any or all tenders,
in ,.,hole or in part, and his action in any Guch respect. shall be final.· .. Subject
to these reservations, rioncompetitive tenders for:j;

200 000 ,or lesS'without

(15)

stated price from any one bidder .rill be accepted in full at the average price (in
three decimals) of accepted competitive bidG.

Settlement for accepted tenders in

accordance vtlth the bids must be made or completed at the Federal Reserve Banl\. on
__
~_c_em_be~r~3~1~,_1_9_6_4____ , in cash or other immediately available funds or in alike

"fl4t

face amount of Treasury bills maturinG _::.De::.:::.c;::em:=b;:.e::::.r:;-:3:::.;1::.1..'...:1==9~6~4~

.Cash and exchange

(H~ )

tenders "Till receive equal treatment.

Cash adjustments will be made for differ-

ences bet",een the par value of maturing bills accepted in exchange and the is-sue
pr:tce of the new bills.
The income derived from Treasury bills, "mether interest or gain from the sale

or other disposition of the bills, does not have any exemption, as such, and loss

from the sale or other disposition of Treasury bills does not have any special
trentrnent, as such, under the Internal Revenue Code of 1954.

The bills are su~ject

to estate} inheritance, gift or other excise taxes, ",hether Federal or State, but

TREASURY DEPARTMENT

Washington
December 16, 1964

FOR Ir1MEDIATE RELEASE,

~
TREASURY

REFUNDS ONE-YEAR BILLS

The Treasury Department, by this public notice, invites tenders for
.$1,00~0,000

,or thereabouts, of

in exchange for Treasury bills maturing
of $ 3,20~,000

365

:w:-

-day Treasury bills, for cash and

December:f1f 1964

, in the amount

,to be issued on a discount basis under competitive and

noncompetitive bidding as hereinafter provided.

The bills of this series will be

dated

December 31, 1964
, and will mature
December 31, 1965 , when
::{&f
=F4
the face amount will be payable without interest. They will be issued in bearer
form only, and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000,
$500,000 and $1,000,000 (maturity value).

Tenders will be received at Federal Reserve. Banks and Branches up to the

closing hour, one-thirty p.m., Eastern Standard timE¥~-We~YzDecember 23, 1964.
~
(9)
=4
Tenders ~nll not be received at the Treasury Department, Washington. Each tender

must be for an even multiple of $1,000, and in the case of competitive tenders the
price offered must be expressed on the basis of 100, with not more than three dec1mals, e. g., 99.925.

Fractions may not be used.

these bills will run for 365

-=+.if

(Notwithstanding the fact that

days, the discount rate will be computed on a bank

discount basis of 360 days, as is currently the practice on all issues of Treasuq
bills.)

It is urged that tenders be made on the printed forms and forwarded in

the special envelopes which "rill be supplied by Federal Reserve Banks or Branches
on application therefor.
Banking institutions generally may submit tenders for account of customers
provided the names of the customers are set forth in such tenders.

Others ~

TREASURY DEPARTMENT
(

December 16,1964
FOR IMMED IA TE RELEASE

TREASURY REFUNDS ONE-YEAR BILLS
The Treasury Department, by this public notice, invites tenders
for $1,000,000,000, or thereabouts, of 365-day Treasury bills, for
cash and in exchange for Treasury bills maturing December 31, 1964,
in the amount of $3,201,591,000, to be issued on a discount basis
under competitive and noncompetitive bidding as hereinafter provided.
The bills of this series will be dated December 31, 1964, and will
'mature December 31,1965, when the face amount will be payable
without interest. They will be issued in bearer form only, and in
. denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000
and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up
to the closing hour, one-thirty p.m., Eastern Standard time,
Wednesday, December 23, 1964. Tenders will not be received at the
Treasury Department, Washington. Each tender must be for an even
multiple of $1,000, and in the case of competitive tenders the price
offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99.925. Fractions may not be used. (Notwithstanding
the fact that these bills will run for 365-days, the discount rate
will be computed on a bank discount basis of 360 days, as is currently
the practice on all issues of Treasury bills.) It is urged that
tenders be made on the printed forms and forwarded in the special
envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Banking institutions generally may submit tenders for account of
customers provided the names of the customers are set forth in such
tenders. Others than banking institutions will not be permitted to
submit tenders except for their own account. Tenders will be
received without deposit from incorporated banks and trust companies
~d from responsible and recognized dealers in investment securities.
Tenders from others must be accompanied by payment of 2 percent of the
face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated
bank or tru s t company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement
\11111 be made by the Treasury Department of the amount and price range
of accepted bids. Those submitting tenders will be advised of the
)-1442

- 2 acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders,
in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, noncompetitive tenders for
$200,000 or less without stated price from anyone bidder will be
accepted in full at the average price (in three decimals) of accepted
competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on'
December 31, 1964, in cash or other immediately available funds or in
a like face amount of Treasury bills maturing December 31, 1964. Cas~
and exchange tenders will receive equal treatment. Cash adjustments
will be made for differences between the. par value of maturing bills
accepted in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain
from the sale or other disposition of the bills, does not have any
exemption, as such, and loss from the sale or other disposition of
Treasury bills does not have any special treatment, as such, under the
Internal Revenue Code of 1954. The bills are subject to estate,
inheritance, gift or other excise taxes, whether Federal or State, but
are exempt from all taxation now or hereafter imposed on the principal
or interest thereof by any State, or any of the possessions of the
United States, or by any local taxing authority. For purposes of
taxation the amount of discount at which Treasury bills are originally
sold by the United States is considered to be interest. Under
Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954
the amount of discount at which bills issued hereunder are sold is not:
considered to accrue until such bills are sold, redeemed or otherwise:
disposed of, and such bills are excluded from consideration as capital:
assets. Accordingly, the owner of Treasury bills (other than life
insurance companies) issued hereunder need include in his income tax
return only the difference between the price paid for such bills,
whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during
the taxable year for which the return is made, as ordinary gain or
loss.
Treasury Department Circular No. 418 (current revision) and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

000

TREASURY DEPARTMENT

December 16, 1964

FOR IMMEDIATE RELEASE
Following is the text of a communique released yesterday in
:Paris by the French Finance Ministry on Ministerial Meeting
of the Group of Ten:

"1.

The representatives of the ten countries participating
in the general arrangements to borrow met at the
Ministry of Finance in Paris on December 15th 1964.
Mr. Emilio Colombo, the present Chairman, who was
unable to attend, asked M. Valery Giscard D'Estaing
to preside in his place. The Managing Director of
the I.M.F. attended the meeting as did the Secretary
General of the O.E.C.D. and the General Manager of the
B.I.S. An observer from the Swiss National Bank was
also present.

"2.

The Minis ters and Governors examined the issues ra ised
by the forthcoming general increase in I.M.F. quotas
and especially the problems related to gold payments of
25 percent in connection with the quota increase. They
had a full exchange of views looking towards the
continuation of the discussions in the I.M.F.

"3.

They heard a repor t on the ac t i vi ty of the study group
on the creation of reserve assets and decided that this
group should make its report to the deputies by next
June so as to enable the Ministers and Governors to take
up the subject at their next meeting in September 1965.

"4.

The representa t i ves of the Ten reviewed the recen t
evolution of the international monetary situation. They
took note of the satisfactory working of the G.A.B. on
the occasion of its first activation.

"5.

The Ministers and Governors had a preliminary exchange
of views on the renewal of the G.A.B. about which a
decision has to be taken before October 1965."

000

D-1443

- 3 January 1, 1965, to a corporation of the Netherlands Antilles will
be required to withhold United States tax on payments made to corporations at the full statutory rate unless, prior to such

p~ent,

he receives a certificate issued by the Office of the Inspectorate
of Taxes of the Netherlands Antilles stating either (1) that such
corporation is not entitled with respect to any of its United States
income to any of the special Netherlands Antilles tax benefits
mentioned in Article I (1) of the protocol or (2) that all the
stock of such corporation is owned solely by one or more individuals
resident in the Netherlands

Antille~solelY

by one or more individuals

resident in the Netherlands or solely by one or more corporatiOns
of the Netherlands.

Procedures were also worked out for the issuance

of certificates to withholding agents by the Inspectorate Office
with respect to corporations organized in the Netherlands Antilles
on or before May 14, 1963.

In such cases, temporary relief is

granted under Article III (4) of the protocol which provides for
certain delays in the application of the modifications made under
the protocol with respect to United States source dividends and
interest.
It was agreed that appropriate notification of the new procedures to be followed with respect to the withholding of United States
tax

under the Netherlands Antilles Convention will soon be issued

for the assistance of United States withholding agents.

- 2 -

Article I (1) of the protocol provides that Articles VII, VIII
and IX of the Convention, as extended to the Netherlands Antilles,
shall not apply with respect to United States source dividends,
interest and royalties derived by certain Antilles entities which
are entitled either to the Netherlands Antilles tax benefits, as
in effect on September 1, 196), which are enumerated in that paragraph, or to "substantially sirililar tax: benefits" granted under
any law of the Netherlands Antilles enacted after that date.

The Netherlands Antilles amended its tax law on December 30,
196~

by adding a new Article permitting corporations to eleot to

be taxed at the rate of

1, percent with respect to United States

source dividends and at the applicable normal rate of either 24
or 30 percent with respect to United States source interest and
royalties.

It was agreed a NetherlandS Antilles corporation

electing to be taxed under the provisions of this new Article
with respect to all of its United States source income would be
entitled to the exemptions from, or reductions in the rate of,
Uni ted States tax provided in Articles VII, VIII, and/or IX of
the Convention.
With respect to the procedures to be established with respect
to the witrJlolding of United States tax under the new protocol on
dividends, interest, and royalties, it was agreed that a United
States withholding agent making payments of such income on or after

Washington, D. C.
December '1
1964

FOR M'lflfiU<'I'l! RELFAS"

h /.A.WIAA'I t 'l~t.5

p'£-(7n

AGREEMENT ON INTERPRETATION OF CERTAIN
PROVISIONS OF, AND WITHHOLDING PROCEllJRES
TO BE ESTABLISHED UNDER, THE PROTOCOL
MODImNG THE NErHERLANDS ANTILLES TAX
CONVENTION
On December 9, 10, and 11, 1964, representatives of the
Governments of the United States and of the Netherlands Antilles
met in Washington to (1) determine the circumstances under which a
Netherlands Antilles corporation will be entitled to the benefits of
Articles VII, VIII and IX of the tax convention between the United
States and the Netherlands as modified by the Protocol signed
October 23, 1963 and (2) agree upon the procedures to be followed
under that protocol in establishing exemption from, or reduction
in the rate of, United States tax to be withheld at the source by
United States withholding agents on dividends, interest, and
royalties derived by corporations of the Netherlands Antilles.
The protocol to the Netherlands Antilles extension became
effective on September 28, 1964, upon the exchange on that date of
the instruments of ratification of the protocol.

It will in general.

apply with respect to payments of dividends, interest, and royalties
made on or after various subsequent dates, the earliest being
January 1, 1965.

TREASURY DEPARTMENT

(

FOR
Tax Agreement With Netherlands Antilles
Representatives of the governments of
the Netherlands Antilles have agreed upon
implementation of the tax protocol signed
on October 23, 1963. The protocol became
28, 1964.

the United States and
procedures for the
by the two countries
effective on September

The procedures concern the method by which U. S. banks,
brokers, and other disbursing agents determine the proper rate
of tax payable to the United States by Netherlands Antilles corporations. Under the Internal Revenue Code, such agents are
required to withhold tax on payments to foreigners.
Attached is a summary of the agreement reached by the govern·
ments of the United States and the Netherlands Antilles. In
addition to discussing withholding procedures, the agreement
deals with the effect of the protocol on certain tax law revisions enacted by the Netherlands Antilles.
About 1,000 corporations in the Netherlands Antilles
will be affected. Income tax withholding from the Netherlands
~~i~le~, both corporate and in~iv~d~a~, totals ~bout
~~mllllon a year.
Total tax llabllltles are sllghtly
larger than that amount.

TREASURY DEPARTMENT

December 18, 1964
FOR RELEASE MORNING NEWSPAPERS
MONDAY, DECEMBER 21, 1964

TAX AGREEMENT WITH NETHERLANDS ANTILLES
Representatives of the governments of the United States and
the Netherlands Antilles have agreed upon procedures for the
implementation of the tax protocol signed by the two countries
on October 23, 1963. The protocol became effective on
September 28, 1964.
The procedures concern the method by which U. S. banks,
brokers, and other disbursing agents determine the proper rate
of tax payable to the United States by Netherlands Antilles
corporations. Under the Internal Revenue Code, such agents are
required to withhold tax on payments to foreigners.
Attached is a summary of the agreement reached by the
governments of the United States and the Netherlands Antilles.
In addition to discussing withholding procedures, the agreement
deals with the effect of the protocol on certain tax law
revisions enacted by the Netherlands Antilles.
About 1,000 corporations in the Netherlands Antilles will
be affected.
Income tax withholding from the Netherlands
Antilles, both corporate and individual, totals about $2 million
a year. Total tax liabilities are slightly larger than that
amoun t.

D-1444

Washington, D. C.
December 18, 1964
FOR RELEASE MORNING NEWSPAPERS
MONDAY. DECEMBER 21, 1964

AGREEMENT ON INTERPRETATION OF CERTAIN
PROVISIONS OF, AND WITHHOLDING PROCEDURES TO
BE ESTABLISHED UNDER, THE PROTOCOL MODIFYING
THE NETHERLANDS ANTILLES TAX CONVENTION
On December 9, 10, and 11, 1964, representatives of the
Governments of the United States and of the Netherlands Antilles
met in Washington to (1) determine the circumstances under which
a Netherlands Antilles corporation will be entitled to the benefits
of Articles VII, VIII, and IX of the tax convention between the
United States and the Netherlands as modified by the Protocol
signed October 23, 1963 and (2) agree upon the procedures to be
followed under that prucocol in establishing exemption from, or
reduction in the rate of, United States tax to be withheld at
the source by United States withholding agents on dividends,
interest, and royalties derived by corporations of the Netherlands
Antilles.
The protocol to the Netherlands Antilles extension became
effective on September 28, 1964, upon the exchange on that date
of the instruments of ratification of the protocol. It will in
~neral apply with respect to payments of dividends, interest,
and royalties made on or after various subsequent dates, the
earliest being January 1, 1965.
Article I (1) of the protocol provides that Articles VII,
VIII and IX of the Convention, as extended to the Ne therlands

Antilles, shall not apply with respec t to United States source
dividends, interest and royalties derived by certain Antilles
entities which are entitled either to the Netherlands Antilles
tax benefits, as in effect on September 1, 1963, which are
enumerated in that paragraph, or to "substantially similar tax
benefits" granted under any law of the Netherlands Antilles
enacted after that date.

(OVER)

- 2 The Netherlands Antilles amended its tax law on December 30 ,
1963 hy cHIding a new Article permitting corporations to elect to
llL' taxed ;It the rate of 15 percent with respect to United States
suurce dividends and at the applicable normal rate of either
24 or 30 percent with respect to UniLed States source interest
and royalties.
It was agreed a Ncth(·rlands Antilles corporation
electing to be taxed under the provisions of this new Article
with respcct to all of its United States source income would be
entitled to the exemptions from, or reductions in the rate of,
United States tax provided in Articles VII, VIIT, and/or IX of
the Conven t i on.
With respect to the procedures to be established with respect
tu the withholding of United States tax under the new protocol on
dividends, interest, and royalties, it was agreed that a
United States withholding agent making payments of such income on
or after January 1, 1965, to a corporation of the Netherlands
Antilles will be required to withhold United States tax on
payments made to corporations at the full statutory rate unless,
prior to such payment, he receives a certificate issued by the
Office of the Inspectorate of Taxes of the Netherlands Antilles
stating either (1) that such corporation is not entitled with
respect to any of its United States income to any of the special
Netherlands Antilles tax benefits mentioned in Article I (1) of
the protocol or (2) that all the stock of such corporation is
owned solely by one or more individuals resident in the Netherlands
Antilles,snlcly by one or more individuals resident in the
Netherlands or solely by one or more corporations of the Netherlands
Procedures were also worked out for the issuance of certificates to
withholding agents by the Inspectorate Office with respect to
corporations organized in the Netherlands Antilles on or hefore
May 14, 1963.
In such cases, temporary re 1 ief is gran ted under
Article III (4) of the protocol which provides for certain delays
in the application of the modifications made under the protocol
with respect to United States source dividends and interest.
It was agreed that appropriate notification of the new
procedures to be followed with respect to the withholding of
United States tax under the Netherlands Antilles Convention will
soon be issued for the assistance of United States withholding
agents.

000

-3would include that coming from community charity drives, such
as the United Givers' Fund or the Community Chest o

Government

support includes federal, state and local o
As the technical information release points out, the onethird test of public support -- which puts an organization in
the 30 percent class -- does not automatically exclude all others
from being able to qualify as publicly supported.

The actual

determination in those other cases will depend upon the circumstances of the particular case.
The attached technical information release of the Internal
Revenue Service deals with the new rules in more detail, and
gives an example of how they might be applied.
The temporary rules will eventually be replaced by permanent rules, which will not necessarily be the same as the
temporary ones e

-2adjusted
percent of the donar's/gross income.
Under the 1964 Revenue Act, contributions to "30 percent'
organizations which exceed the 30 percent level are also eligible
for carryover, which means the excess may be deducted in future
years.

Contributions to "20 percent" organizations are not

eligible for carryover.
The new rules are temporary, and are designed to give
guidance to the taxpayer in determining whether or not a
particular contribution is eligible for the 30 percent limitation
and the carryover.
The new rules state that in order to be automatically
considered a "publicly supported" charitable organization .... and
therefore eligible for the 30 percent deduction -- at least onethird of the total support of the organization must come, directly
or indirectly, from the public or the government 0

Indirect support

December ~ 1964

TREASURY DEPARTMENT
ADVANCE FOR USE IN MORNING PAPERS
MONDAY, DECEMBER 21, 1964

NEW RULES ON CHARITABLE CONTRIBUTIONS
The Internal Revenue Service today announced new rules
governing tax deductions for charitable contributions o
The Revenue Act of 1964 liberalized the tax treatment
of certain charitable contributions.

Previously, the limit on

an individual's deductions for charitable contributions was 20
adjusted
percent of/gross income, and only contributions to certain organizations such as churches, hospitals, and schools could be
deducted up to 30 percent of his incomeo
The Revenue Act of 1964, however, provided that the more
liberal 30 percent limitation would also apply to contributions
to any "publicly supported" organization, thereby substantially
increasing the number of "30 percent" organizations o

For example

contributions to the Red Cross will now be deductible up to 30

TREASURY DEPARTMENT

December 18, 1964
FOR RELEASE MORNING NEWSPAPERS
!ONDAY , DECEMBER 21: 1964

NEW RULES ON CHARITABLE CONTRIBUTIONS
The Internal Revenue Service today announced new rules
governing tax deductions for charitable contributions.
The Revenue Act of 1964 liberalized the tax treatment of
certain charitable contributions. Previously, the limit on an
individual's deductions for charitable contributions was
20 percent of adjusted gross income, and only contributions to
certain organizations such as churches, hospitals, and schools
could be deducted up to 30 percent of his income.
The Revenue Act of 1964, however, provided that the more
liberal 30 percent limitation would also apply to contributions
to any "publicly supported" organization, thereby substantially
increasing the number of "30 percent" organiza tions.
For example,
contributions to the Red Cross will now be deductible up to
30 percent of the donar's adjusted gross income.
Under the 1964 Revenue Act, contributions to "30 percent"
organizations which exceed the 30 percent level are also eligible
f~ carryover, which means the excess may be deducted in future
years. Contributions to "20 percent" organizations are not
eligible for carryover.
The new rules are temporary, and are designed to give guidance
to the taxpayer in de termining whe ther or not a particular
contribution is eligible for the 30 percent limitation and the
carryover.
The new rules state that in order to be automatically considered
a "publicly supported" charitable organization -- and therefore
eligible for the 30 percent deduction -- at least one-third of the
total support of the organization must come, directly or indirectly,

D-1445

- 2 from the public or the government. Indirect support would include
that coming from community charity drives, such as the United
;ivers' Fund or the Community Chest. Government support includes
federal, state and local.
The attached technical information release of the Internal
Revenue Service deals with the new rules in more detail, and
~ives an example of how they might be applied.
As the technical information release points out, the onethird test of public support -- which puts an organization in
the 30 percent class -- does not automatically exclude all others
from being able to qualify as publicly supported. The actual
jetermination in those other cases will depend upon the
:ircumstances of the particular case.
The temporary rules will eventually be replaced by permanent
which will not necessarily be the same as the temporary

~ules,

meso

000

U.L

l~,

TREASURY

DEPARTMENT

INTERN AL REV ENUESE RVICE
PUBLIC

INFORMATION

DIVISION

WORTH 4-4021

TECHNICAL INFORMATION RELEASE
"r:::::;=:::; : : : :':' : :
':..:
"
"

...;.•..

...

: :
"
: . :.

TIR-667
:

FOR RELEASE
Monday, December 21, 1964

The Internal Revenue Service today announced certain temporary
rules for determining whexher charitable contributions to certain
organizations constitute gifts to "publicly supported" organizations.
Under the provisions of the Revenue Act of 1964, "publicly supported"
organizations qualify as "30-percent organizations". Charitable contributions
by an individual to a "publicly supported" organization :nay generally,
as is the case with respect to gifts to other types of "30-percent
organizations", be deducted to the extent that such contributions do
not exceed 30 percent of the donor's adjusted gross income. Contributions
to privately supported organizations are normally subject to a 20percent limitation.
Gifts to "30-percent organizations" by an individual which exceed
30 percent of his adjusted gross income may generally be carried over
and deducted in later years under the "carryover" provision add'':!d by
the Revenue Act of 1964.
Internal Revenue explained that the rules issued at this time are
temporary and are being published ·.l1erely to provide guidance for d:>nors.
These temporary rules are not exclusive, however, and a donor may be
able to establish, on the basis. . of all the fa::: ts and circumstances,
that an organization to which he has contributed is a "public 1y supported"
organization.
Internal Revenue also stated that the rules announced at this time
do not necessarily reflect the position which will be taken in the
regulations to be issued under this provision, but may be relied upon
in determining the deductibility of contributions made in any taxable
year beginning after December 31, 1963, and ending prior to the d3.te
of the promulgation of such regulations.
Section 170 of the Internal Revenue Code contains a limitation which
allows individual taxpayers a charitable deduction of up to 20 percent
of their adjusted gross income (computed without regard to any net
operating loss carryback) for contributions made to or for the use of
certain organizations, known as "20-percent organizations", including,
among others, organizations organized and operated exclusively fo:
religious, charitable, educational, etc., purposes, and to the Un1ted
States, a State, or a local goverTh~ental unit if the contribution is
made for exclusively public purposes.
- MORE -

TIR-667-2
Prior to the Revenue A~t of 1964, a deduction limited to an
10 ?crcent of adjusted gross income (com?uted ~ithout regard
L~ 3"
aet operating ~o~~ carryback) was als~ allowable in the case of
'.'L"i"LLLi,.':-'" :1,J2 IJ
~·tain other organizations, knolvn as "30-percent

~I~itio~al

,,). ~~:lr~i~l."ltic~:~I!~

_n 1u3~11~ churclles,

or conventions or associations of

ccrj-Jl _Jli~ation3.l organizations, hospitals, certain medical
i~~':'~ln:l or:;,:l"iZ_lL .. O~lS, and :ertain org2nizations affiliated ';vith State
Loll~g~~ or u~iversities.
The Revenue Act of 1964 continued this
))ro\'i8';.Oi1 and expanded the group ~f "30-percent organizations" to
include organizations which normally receive a substantia~ part oL,their
sUppDrt ~.rOlll a gov?r~11€nt_al unit ~rfr0mdir€_c.t .or :indirect, c~ntributipns
from the general public (section 170 (b) (1) (A) (vi) ).

,.1

,~'L"CC;,

Contributions to "30-percent organizations" by individuals are,
generally, deductible to the extent that such contributions, when added
to deductible contribJtions to "20-percent organizations", do not exceed
30 percent of the donor's adjusted gross inco~e. For example, if a
taxpayer makes a ':::ontribution which equals 18 percent of his adjusted
gross in:::ome to an organization in the 20-percent group and makes an
3.dditional contribution which equals 12 percent of his adjusted gross
in:::ome to an organization in the 30-percent group, both contributions
are fully deductible.
In addition, contributions to organizations in the 30-percent
group in excess of 30 percent of the donor's adjusted gross income may,
generally, be carried over and deducted in a later year under section
170 (b) (5) added by the Revenue A:::t of 1964. However, such carryover
is available only if the contributions to organizations in the 30percent group alone exceed 30 percent of the taxpayer's adjusted gross
income without considering contributions to organizations in the
20-percent group. Furthennore, contributions to organizations in the
30-percent group are "qualified:::ontributions" u:1der the new prov~s~ons
dealing with the unlimited ~haritable contribution deduction which were
also added by the Revenue Act of 1964.
Internal Revenue stated that in determining whether an organization
is "publicly supported", the term "support" not only includes contributions
received by the organization, but also includes investment income,
such as, interest, rents, royalties, dividends, and capital gains,
and net income from related and u:1related business activities. However,
in determining the amount of any capital gain to be included in support,
the organization should use as its basis the fair market value of any
contributed property at the time of its contribution. "Support" does
not include any income from the exercise or performance by an organization
of its charitable, educational, or other purpose or function constituting
the basis of its exemption under section 501 (a), such as fees charged
for admission to a museum.

- MORE -

TIR-667-3
Internal Revenue stated that whether or not an organization receives
a "substantial" part of its support from the sources required by the
statute depends upon the facts and circu~stances in each case, The
Service also noted that the term "substantial" is used in many places
in the tax law and that its meaning in one section is not necessarily
applicable in other sections. Internal R~venue, however, said that an
organization will be considered to be one which nonnally receives a
substantial part of its support from donations by a governnental unit,
from donations made directly or indirectly by the general public, or
from donations from a combination of these sources if such organization
received 1/3 or more of its support for each of three out of its last
four taxable years ending prior to July 1, 1964, from such sources.
Indirect contributions from the general public inc lude contributions
from other "publicly supported" organizations, such as a United Givers Fund.
The requirement that the support be received from the general public
means that such support must be received fro~ a ~ide segment of the public,
and not solely from a few individuals or fa~ilies. Therefore, contributions
by any individual, trust, or corporation shall be taken into account in
determining whether the 1/3 of support test is met only to the extent
that such contributions do not exceed 1 percent of the organization's
total support. In applying this l-percent limitation, all contributions
made by a donor and a related person within the meaning of section 267
(b) shall be treated as made by one person. The I-percent limitation
does not apply to contributions from governnental units or from other
"publicly supported" organizations.
The application of these rules may be illustrated by the following
exa;nple:
In 1963, X, an organization referred to in section 170 (c) (2),
received total support of $50,000 from the following sources:
$30,000

Investment income
Contributions:
100 gifts, each of less than
$500
4 gifts of $750 each
1 gift of $2,000
Total contributions

$15,000
3,000
2,000
20,000
$50,000

Total support of X

- MOllE -

TIR-667-4
The ano~mt of support which X received from the general public
may be computed by adding the following:
(1), Since none of the 100
gifts ex.ceeds 1 percent of total support, the full a~nount of such gifts
($15,0'))); (2) the portion of each $750 gift which d'Jes not exceed
1 percent of total support ($50,OJO x 1% = $50J; $500 x 4 ~ $2,000);
and (3) the portion of the $2,000 gift which does not exceed 1 percent
of total support ($50J). The total contribution from the general
public would 'oe $17,50J ($15,000 + $2,000 + $500). Since this anount
exceeds 1/3 of XIS total support, X will be considered tc have received
a substantial part of its support from the general public for 1963.

- END -

u. S. TREASURY DEPARTMENT
INTERNAL REVENUE SERVICE

POSTAGE AND FEES PAID
INTERNAL REVENUE SERVICE

WASHINGTON, D. C.

FIRST CLASS MAIL
OFFICIAL BUSINESS

TECHNICAL
INFORMATION
RELEASE
Public Information Division

F")i\' ..: L.-Jw~; A.:. tIEllS?AYERS ,

3aturday, DeoM.ber 19, 1964.
The Tre&8lU"y l.epartAent anDOUJlCed lae' eYeD1nc that tbe ___a , . We . . . . .
:'reasury biUa, one seri•• ~ be an additional i .._ of ",be hUl....... sep, . . _ .,
1964, and the otrer aeri•• t.o be dated neo-ber ~, 19&, vtWdl wre otfIaNd • DIIIIIIII
lL, were opened at the Federal Hesene Bank.s on Deo_t.r 18. 1'eDMft Wft ttwl-.. III
~1,2'j(),OOO,OOO, or tnereabout.s, ot 9l-dQ' biUs and fw ~l,OOO,ouO,ooo. .. u.....
of l82-day billa. The details Jf the two ••ri.. an . . toU. . .

1A.\;:)£ iF ACCi<:?T:;n
C~PSTrrIV1:..:.

•

F,I~'I

•
I
I
I

tl.~n

•

'Il

Low
Avera ~e

~.xcepting

one tender ot $30,000

"S6,~ of tbe amount of 9l-dQ- billa bid tor at. the low pr1~,: . . ~
32:' of the amount of 162-cIa¥ bUla l:J1d tor at. the low pr1o. . . MOePW
T'.Yl'AL

TS~DCtiS

A??LJBD ;;')2 Mm A:CEP'f'k:n BY FED£BlL

District.

Applied For

Bost(Jfl
New York

46,002,000

AoIe~

,000'

~U6,.

1,661,)07,000

nl,1aSI,OI

1),968,000 I
24,229,000 I
12,418,000 I
21,9f)S,OOO'
lSl,)66,OOO I
28,980,000 I
14,169,000'

U,61.2,OOO

6,)11,.

)S,~,OOO

l87,17S,OOO
35,208,000
16,69),000
27 ,670,CXXl

Dallas

25,8)6,000
90,)5,.000

3an :rancisco

21.
il
11

~~or

19l,819,000.

iehriond

1"11lnea?olis
tanaas City

,6Oi,ooo : ,

29,268,JOO
29, 229, (X)()
12,478,000

'Cleveland

3t. Louis

Acoe~ted
.$

RYE D13TTUCTSa

1,$66,891,000

?hUadelpbia

Atlanta.
Chicago

nE.<3~

2),)90,000

20,696,000
$6,611,000

I
I
I

'!/

$1,916,000
18,580,000
2),212,000
194,070,000
1),28$,000

7.JS8,o!j()

2),634,000
12,121,000 ,

120,491,000
$2,185,114,(0)

)6",.,.

8, SkO,OII
1),",,11
10),S. .0I
ll,w.-

4,aSl,18,0SIa,'1",711
S1,6a;!

11,011"".

MTAL:--;
$2,101,809,000 $1,200,)1),000
rncludes $ 207 , 31),000 noncaapet.1 t.i f t tende r8 accepted at the IlYttftP pl"i.oe of " , .
Includes ~96. 748,000 ftODC<alpetitift tendere accepted at the uerage pri• . , , . " .
)n a coupon issue of tt. same length and tor the . . .
1m'..w, \be .......
these billa wuld proY1". y18lds ot 3.96~, for tfte 9l-dq bW8p aU 4.1OJ, ,.. ..
l82-day billa. Tntereet. rates on bIlla are quoted in t~nus of .... 41--'
toN let.vft related to. the f'ace ..ount of the billa pqable at, aat1Ir1'7 N . . . . . .
t.r.. 8l'll00'"'.t. inYe8ted and their length in act.ual nwaber of' da.Ya nl,aMcl W a )60 ""
year. III e~tnn, ;ielda Oft cert:ltioatea, note., and bonds an .-paW Sa-of interest on t.h• •owrt. illY•• ted, and relate tr,. ruaber of d:V. rnr1.m. Sa •
intereat p&lMnt ,p'!r1od v... t..;e act.ual nuaber of days in the period, v1\b . . . , p1
o~pound1ng if IIOre than one coup-:m peri,)d 18 1molftCl.

_GUn'

, , II I

1.\

vi.

TREASURY DEPARTMENT

FOR RELEASE A.f.;. NEWSPAPERS,

Saturday, December 19, 1964.
RESULTS OF

December 18, 1964
TR.~;ASURYI

S 1rJEEKLY BILL OFFERING

The Treasury Department announced last evening that the tenders for two series of

~~ury bills, one series to be an additional issue of the bills dated September 24,

rnIi, and the

other series to be dated December 24, 1964, which were offered on December
~iwere opened at the Federal Reserve Banks on December 18.
Tenders were invited for
$!.;200,OOO,OOO, or thereabouts, of 91-day bills and for $1,000,0;)0,000, or thereabouts,
of 182-day bills. The details of the two serj es are as fol] ows :
PJiNGE OF ACCEPTED
OOMPETITIVE
BIDS:
, ,

High
Low
Average

91-day Treasury bil]s
maturing March 25, 1965
Approx. Equiv.
Price
Annual Rate
99.025 a/
3.i357>~
99.020 3.877%
99.022
3.868%

182-day Treasury bills
maturing .Tune 24, 1965
Approx. Equiv.
Price
Annual Rate
98.002
3.952%
3. 964~~
97 .996
3.960; y
97.998

a/ ~ceptine one tender of $30,000
'8'6.r. of the amount of 91-day bills bid for at the low pricp. was accepted
32% of the amount of 182-day bills bid for at the low price was accepted
IOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
~Pistrict

(Jloston
~w York
~. iladelphia
+leveland
:}tl.chrnond
~tlanta

:~hicago

.~ Louis
neapolis
'sas City
las
~ Francisco

Applied For
$
46,002, 000
1,566,891,000
29,268,000
29,229,000
12,478,000
35,004,000
187,175,000
35,208,000
16,693,000
27,670,000
25,836,000
90,355,000

Accepte-od,.--___
34,602, 000
791,879,000

~pplied

13,968,000
24,229,000
12,478,000
27,985,000
151,386,000
28,980,000
14,169,000
23,390,000
20,696,000
56,611,000

For
: ..1,h56,000
1,661,307,000
11, 61?, 000
57,976,000
18,580,000
23,272,000
194,070,000
13,285,000
7,358,000
23,634,000
12,127,000
120,h97, ()OO

Accented
$ i9,lS6,OOO
713,l.62,000
6,312,000
36,932,000
5,54 0 ,1)00
13,996,000
103,532,)00
11, i+~5 , 000
4,858,000
IB,05h,000
7,127,000
57,666,000

$2,101,809,000
$1,200,373,000 bl $2,185,174,000
~cludes $207,310,000 noncompetitive tenders accepted at the average price of 99.022
';!tichdes $96,748,000 noncompetitive tenders accepted at the average price of 97.998
.,pn a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 3.96%, for the 91-day bills, and 4.10%, for the
1:ff2-day bills. Interest rates on bills are quoted in teMs of bank discount with
t~return related to the face amount of the bills payable at maturity rather than
the amoul1t invested and their length in actual number of days related to a 360-day
~ar. In contrast, yields on certificates, notes, and bonds are computed in terms
?~ interest on the amount invested, and relate the number of days remaining in an
Interest payment period to the actual number of days in the period, with semiannual
comPounding if more than one coupon period is involved.

....

-1446

TOTAL:-3

TREASURY DEPARTMENT
Washington

REMARKS BY THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT THE PRESENTATION OF THE ALEXANDER HAMILTON AWARD
TO ROBERT V. ROOSA,
UNDER SECRETARY OF THE TREASURY FOR MONETARY AFFAIRS
IN ROOM 4121, MAIN TREASURY BUILDING
MONDAY, DECEMBER 21, 1964, 12:00 P.M., EST.
Throughout most of the critical periods in our history, the
United States has had the good fortune to find the services of
the right man at the right time.
It is my privilege today to formally recognize such service
by just such a man at this important juncture of our history.
His citation for the highest Treasury award describes the
services he performed for the nation on the domestic and
international fronts. But it cannot describe those personal
qualities upon which much of his successful Government career has
been so soundly based.
In 1960, when President-elect Kennedy turned to Bob Roosa
to help the Treasury meet its pivotal responsibilities in
debt management and in strengthening the defenses of the dollar,
he found the man who was, on two counts, best equipped for the
job.
First, Bob Roosa was an outstanding expert in the field of
finance, both as it concerns our domestic economy, and as the
principal link between the open societies of the free world.
In his capacity as an expert, we have had generous use of
his creative and operational genius.
His second qualification was his genius as a teacher.
In its highest sense, this is one of the rarest and least
appreciated qualities of a Government official. But he soon
persuasively displayed his outstanding ability to impart knowledge
and to deepen understanding of economic currents often only dimly
perceived and little understood.

- 2 The effects of his innovations and of his keen judgment
have been readily measurable.
They have contributed substantially
to the maintenance, under two Presidents, of sound financial
conditions for economic growth, and to the successful defense of
the dollar.
But perhaps of even longer-range importance, although not so
readily apparent, is the legacy he leaves in the form of a wider,
deeper and more relevant understanding on the part of the
Executive Branch, the Congress and the Press, of the essential
role of our fiscal and financial decisions in attaining the goals
President Kennedy strove for, and which President Johnson is now
encompass ing in his plans for the "Grea t Soc ie ty" .
We at the Treasury have had the privilege of witnessing, in
Bob Roosa's las t four years with us, a personal "success story".
Although we can categorize him as a young man, he has capped a
respected Government career with a brilliant finish, and now moves
into a private life which will be enhanced by a much deserved
opportunity for personal reward.
In addition, he takes with him
an unparalled degree of personal respect -- and what is more, of
personal affection -- of all who worked with him and for him.
I have the honor now to present Robert V. Roosa with the
Treasury Department's Alexander Hamilton Award, for which I will
first read the citation:
"Seldom have man, position, and challenge been
so aptly matched as during the four years you carried
so large a share of the responsibility for the
financial health of the Nation. At home, the blend
of brilliant perception, experienced judgment, and
operating ingenuity you brought to the task of
managing the public debt and to the counsels of
broader economic policy has immeasurably eased the
task of providing a solid financial base for the
Nation's vigorous economic growth. Taking office at
a critical juncture in our international financial
relations, your capacity for combining bold innovation
in financial technique with patient application and
reasoned exposition in international forums breathed
new life and substance into the concepts of mutual
consultation and cooperation that have become the
hallmark of a greatly strengthened international
monetary system.
It is fitting that this award recognize
these years of extraordinary service to the Department
and to the Nation in the tradition established by
Alexander Hamilton, but it can be only a token of the
lasting imprint of your creative financial genius on the
monetary affairs of this country."
000

Te;

season,

i'$S8ure
t~)e

bi.ac.r.

~l.

ti.roe curing

'fr:••• ury aanouac.c tocley ita

~eekly 0f!~rtfti

holida,

reguu.~

of $1.2 billion 3-.ontn tr•••ury

~1118

tonrl $1. () bUlton 6-month Trea8ury b111. to be auctiGMd

on Rondey _ DKember 28.

December 21, 1964

MEMORANDUM TO THE PRESS:
TREASURY WEEKLY BILL OFFER
To assure bidders ample time during the holiday
season, the Treasury announced today its regular
weekly offering of $1.2 billion 3-month Treasury bills
and $1. 0 billion 6-month Treasury bills to be auctioned
on Monday, December 28.

- 3 -

and exchange tenders vill receive equal. treatment.

Cash adjustments will be made

for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the WI
or other disposition ot the bills, does not have any exemption, as such, and loss
trom the sale or other disposition of Treasury bills does not have any special
treatment, as Buch, under the Internal Revenue code of 1954.

The bills are sub.1ec·

to estate , inheritance, gift or other excise taxes, whether Federal. or state, but

are exempt from all taxation now or herea.:rter imposed on the principal or interest
thereof by any state, or any of the possessions of the United states, or by any
local taxing authority.

For purposes of taxation the amount of discount at which

Treasury bills are originally sold by the United states is considered to be interest.

Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code ot 1954

the amount of discount at which bills issued hereunder are sold is not considered
to accrue until such bills' are sold, redeemed or otherwise disposed ot, and such
bills are excluded from consideration as capital assets.

Accordingly, the owner

of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for suct
bills,· whether on original issue or on subsequent purchase, and the amount actuall
received either upon sale or redemption at maturity during the taxable year tor
which the return is made, a.s ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, pre·
scribe the terms of the Treasury bills and govern the conditions of their.issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 BETA - MODIFIED

decimals, e. g., 99.925.

Fracti.ons may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which Will
be supplied by Federal Reserve Banks or Branches on application therefor.

Banking institutions genera.lly may submit tenders for account of customers
provided the names of the customers are set forth in such tenders.

Others than

banking institutions will not be permitted to submit tenders except for their
own account.

Tenders will be received without deposit from incorporated bMks

and trust companies and from responsible and recognized dealers in investment
securities.

Tenders from others must be accompanied by payment of 2 percent ot

the face amount of Treasury bills applied for, unless the tenders are accompanied
by an express gua.ra.nty of payment by an incorporated bank' or trust company.
Dmnediately a.:f'ter the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the Treasury Department of the amount and price range of accepted bids.

Those

submitting tenders will be advised of the acceptance or rejection thereof.

The

secretary of the Treasury expressly reserves the right to accept or reject any
or a.ll tenders, in whole or in part, and his action in any such respect sha.11 be
each issue for
final. Subject to these reservations, noncompetitive tenders for/$J{xxxxxxuol
$200,000 or less without stated price from anyone bidder will be
Pit aceepte

~~~Sf(1~:r~mX~=:~""
_liIi

competitive bids for the respective

!!I10110. . . . . . .

i1I:h. x1l....,. ,ftr

issues.

cwpb.d"YrI'~"k_x)ckct.X"i'Xh"N)(i••"IX"i.,*xi ••' " . ,

Settlement for accepted ten-

ders in accordance with the bids must be made or completed at the Federal Reserve
Banks on

DeCemb~,

1964

,in cash or other immediately available tunds or

in a like face amount of Treasury bills maturing

December 31, 1964

lDf

• Cash

~
fiffm~
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,

December 21, 19
TREASURY'S WEEKLY BILL OFFERING

The Treasury Department, by this public notice, invites tenders for two seri
of Trea.sury bills to the aggregate amount of $ 2z200~zOOO , or thereabouts, to
cash and in exchange for Treasury bills ma.t'\1ring December 31, 1964 , in the amot

of $ 3,201,591,000 , as follows:

+4+

91 -day bills (to maturity date) to be issued Decemberftf 1964

W-

in the amount of $ lz200oM'OOO , or thereabouts, representing an additional amount of bills dated
and to mature

April 1, 1965

"f4O

amount of $ 900 ~ 000

oc~ober-t4:1964

, originally issued in the

,the additional and original bills

to be freely interchangeable.
182 -day bills, for

(ll)
DeCembe,

$ 1,000,000,000 , or thereabouts, to be dated

dY 1964

{U)

, and to mature

Ju4r ~65

The bills of both series will be issued on a discount basis under competith
and noncompetitive bidding as hereinafter provided, and at maturity their face
amount. will be payable without interest.

They will be issued in bearer form only

and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and
$1,000,000 (maturity value).
'lenders will be received at Federal Reserve Banks and Branches up to the
clOSing hour, on~-thirty p.m., Eastern Standard time, Monday, December 28, 1964

:tJ4
Each tender

'!'enders will not be received at the Treasury Department, Washington.

must be for an even multiple of $1,000, and in the case of competitive tender8 tb
price offered must be expressed on the basis of 100 , with not more than three

TREASURY DEPARTMENT

December 21, 1964
FOR IMMEDIATE RELEASE

TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$2,200,00d,000,or thereabouts, for cash and in exchange for
Treasury bills maturing December 31,1964, in the amount of
$3,201,591,000, as follows:
9~day bills (to maturity date) to be issued
in the amount of $1,200,000,000, or thereabouts,
additional amount of bills dated Oc tober 1,1964,
~ture April 1,1965,
originally issued in the
$900,333,000, the additional and original bills
interchangeable.

December 31, 1964,
representing an
and to
amount of
to be freely

182 -day bills, for $1,000,000,000, or thereabouts, to be dated
December 31, 1964,and to mature July 1, 1965.
The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided, and at
maturity their face amount will be payable without interest. They
will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000
(maturi ty value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty p.m., Eastern Standard
time, Monday, December 28, 1964.
Tenders will not be
received at the Treasury De~artment, Washington. Each tender must
be for an even multiple of $1,000, and in the case of competitive
tenders the price offered must be expressed on the basis of 100,
with not more than three decimals, e. g., 99.925. Fractions may not
be used. It is urged that tenders be made on the printed forms and
forwarded in the spec ial envelopes whic h will be supplied by Federal
Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of
customers provided the names of the customers are set forth in such
tenders. Others than banking institutions will not be permitted to
submit tenders except for their own account. Tenders will be received
Without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.

D-1447

- 2 -

Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Department of the
amount and price range of accepted bids. Those submitting tenders
will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly res:rves the righ: to a~cep~ or
reject any or all tenders, in whole or ~n part, and h~s act~on ln
any such respect shall be final. Subject to these reservations,
noncompetitive tenders for each issue for $200,000 or less without
stated price from anyone bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids
for the respective issues. Settlement for accepted tenders in
accordance with the bids must be made or completed at the Federal
Reserve Banks on December 31, 1964, in cash or other immediately
available funds or in a like face amount of Treasury bills
maturing December 31, 1964. Cash and exchange tenders will
receive equal treatment. Cash adjustments will be made for
differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject to
estate, inheritance, gift or other excise taxes, whether Federal or
State, but are exempt from all taxation now or hereafter imposed on
the prinCipal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to be
interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills are
sold, redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this
notice prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained fron
any Federal Reserve Bank or Branch.
000

· ~

As a member of the House of Representatives in the 79th to 88th Congresses,
inclusive, and as Olainnan of the Appropri.atiansc Subcommittee for the Department!
of the Treasury and Post Office during the 8lst,82nd, and 84th through the 88th
Congresses, Me Gary has made outstanding contributions to the public service.

His leadership abilities and prestige in the Congress, his depth of under-

standing of this Department's programs, his penetrating analysis, and his skillf1
handling of the appropriations for the Treasury
fin~cial

~ave

provided the Department wit]

resources to fulfill its mission in a most effective and economical

man_l1er.
In addition to his exceptional legislative abilities, Mr

Ga~

has

all of the fine personal qualities of a traditional Virginia gentleman. His
every action reflects the highest personal integrity, a gentleness of manner, an
consideration for the viewpoints of ot :-erso He is a true disciple of Jeffersonia
~1.:lciples.

~. Gary

has been an

invalu~ble

counselor to me as Secretary of the Treas

and to my predecessors, in the conduct of the iffairs of this Department. We sha
sorely miss the benefit of his wise counsel ani leaderShip in ruture Congresses

HA is a most

deservi~g
)

Se Mee Awardo '

)

recipient of the

Treasu~f

Department's Distinguished

(Hom until a.fter ceremony at 12 Noon)
Info letterhead
December

2i,

1964

FOR n~'.Kfl)IA TE RELEASE

REFRESEN'D\TIVE J. VAUGHAN GARY CITED
FOR DISTINGUISHFD SERVICE
Secretary of the Treasury Douglas Dillon presented the Treasury's
Distinguished Sprvice Pward to Congressman J. Vaughan Gary, Third District
of Virginia, at a ceremony held at noon today at the Treasury Department.
~.,...,

...................

v ........ _ . . . . . .-

---

---r---,,-- -- ----

given for "'Wlusually outstanding assistance 1to the Department."
Today marked the second time the award has been given and the first time

having been a
h the 88th Congress
ntinously, he has
partments of the
tice of law on
Shewmake, Gary, God

Following is the text of Secretary Dillon' 5 citation of Congressman GaI'1:

TREASURY DEPARTMENT
(

FOR IMMEDIATE RELEASE

REPRESENTATIVE J. VAUGHAN GARY
CITED FOR DISTINGUISHED SERVICE
Secretary of the Treasury Douglas Dillon presented the
Treasury's Distinguished Service Award to Congressman J. Vaughan
~ry, Third District of Virginia, at a ceremony held at noon
today at the Treasury Department.
The new Distinguished Service Award was established by
Secretary Dillon last year as the Treasury's highest recognition
which may be conferred on an individual citizen who is not an
employee of the Department. The award is given "in recognition
of dis tinguished publ ic service."
Today marked the second time the award has been given, and
the first time that it has been conferred on a member of Congress.
After having been a member of the House of Representatives
from the 79th through the 88th Congresses, Congressman Gary
lid not seek re-election and is retiring from the Public Service.
~ring seven of these Congresses, including the last five
:ontinuously, he has been Chairman of the Appropriations
:ubcommittee for the Departments of the Treasury and Pos t Office.
!e will return to the active practice of law on January 1st,
enewing his affiliation with the law firm of Shewmake, Gary,
oddin, Blackwell, Elmore, and Belcher, in Richmond, Virginia.
Following is the text of Secretary Dillon's citation of
:ongressman Gary:
"As a member of the House of Representatives, in the
79th to 88th Congresses, inclusive, and as Chairman of
the Appropriations Subcommittee for the Departments of
the Treasury and Post Office during the 8lst, 82nd, and
84th through the 88th Congresses, Mr. Gary has made
outstanding contributions to the public service.

-1448

, i

- 2 -

"His leadership abilities and prestige in the
Congress, his depth of understanding of this Department's
programs, his penetrating analysis, and his skillful
handling of the appropriations for the Treasury have
provided the Department with financial resources to
fulfill its mission in a most effective and economical
manner.
"In addition to his exceptional legislative
abilities, Mr. Gary has all of the fine personal
qualities of a traditional Virginia gentleman. His
every action reflects the highest personal integrity,
a gentleness of manner, and consideration for the
viewpoints of others. He is a true disciple of
Jeffersonian principles.
"Mr. Gary has been an invaluable counselor to me
as Secretary of the Treasury, and to my predecessors,
in the conduct of the affairs of this Department. We
shall sorely miss the benefit of his wise counsel and
leadership in future Congresses. He is a most deserving
recipient of the Treasury Department's Distinguished
Service Award."

000

FQd lEL',A33 A. K. ~ttliS?AP·~aS,

Thuraday, DeOMber 24, 1964.
aES1.."L'lS )1" ilKFUKDUiO OF 11 8ILLlOli
'l'Jle

aMl-DAIl IIW

lrea'\1J7 Dep&rtl1lQ1lt annoUDHCl la.t. eveD1A& \bat the ........

t . 11,000,• .-

or tbereabout., of )6S-da,T T~ bUla t.o be dated :0.....,. )1, 15161., ... te . . .
De...oer )1, 1965, vnioa vere ott.reel OD o.a.ber 16, were opeM4l.' \he ,~ ....
Banka on ::>eoenlbur 2).

Ina detail, of tbl, i,au. are a. toll... ,
Total applied tor Total accepted

dang.

12,)08,404,000

(1DollldM t'U,Ji18,OOO e.\end . . .
......,.t1t1",e baei. aDd ••e..,.... ill
tull at tbe a",enp prio. . . . . MI._)

- '1,000,$40,000

ot accepted ooapet.ltlY. bleWl

(F.uep\1Dc

ODe

tender ot 1100,0(0)

- 9S.987 tf'..qu1ftl.at rat. of d1aOO1lDt appl'OZ. 1.iSS',......
- 9S.96$
..
...
II
·).9801"
Ave raJ;.
- 9).972
lit
""
..
•
).911.' I
(93 percent. of the _oUAt. bid for at the low pr1_ . . a_pted)
tAgh

Low

'ederal

a.a.rft

D1at.r1ct
Beeton
New York

Pb.U.adel;Jhia
~ev.laod

Ae-;"
i l,lSO,a

total

tor

4),720,000
1,7)]. ..861,000
14,251,000
8~,892,OOO

6SO,k!6,OOO
2,aSl,000
$0,066,000

9,t)4S,OOO

1,6laS,OOO

Atlanta

20,02),000

lli,)8),OOO

Chicago

216,h4l,OOO

lSk,878,OOO

iUDneapoli.

lU,718,OOO
18,w..s,ooo

lanK. City

10,011,000

4,261,000
8,961,000

All..

»,210,000
88,179,000

R.iohmond

st. Loui.

San Francisco

Total
Applied

',Sb),OOO

1',*,000

1tS.1I2,ooo
I1,OOO,SI6O,OOO

Tv"fAL
12,)08,404,000
Jll a coupon ~.Slle of to. aa=. lucth and for tbe . . . _\lilt 1......., " .. ,...,.
t.ile. . bUlB iIOul.d proY.1,. a yUle! 01 4.15:£. later•• t rat.. OIl bw.. an ..... ill
tv.. of bank. di.count wittl tbe ,..\urD r.lated to the face . .ouat 01 ,be taUll ,.,
able at dturlty ratnt'Jr tban the UIOlZDt 10ft_ted and t.heir IMg\h 1a aoMIl 'JEt.
o! day. related to a )60-day YHl". In coDtru't., ;y1.1da on oan1t1eat,•• , _ _ 1M
boDda are 001llputed in term. of iD't.ttrest OIl the aouat iDfta\ecl, &ad relate . . _
of da¥a rua1.nlLlg in an interest payHnt oenod to tobe aot.aal rJIIIIbeIt .t Up t.a til
period, wi tn '8lf!1a".nual oOllPOunCing 1t 3rIOre than one CCNpOIl pel"104 18 i.awlftd.

TREASURY DEPARTMENT
(

RE1Y.SE A. M. !'ffi i'liS ~APE~~ ,
~daYJ December 24, 1964.

December 23, 1964

rlESUL'l'S OF REFUNDING OF ;$1

BILLIO!~

Ol~E-i.:iAtl

dILLS

The Treasury Department announce~ last evening that the tenders for $1,000,000,000,
reabouts, of 365-day Treasury b111s to be dated December 31, 1964, and to mature
~r 31, 1965, which were offered on December 16, were opened at the Federal Reserve
son December 23.

The details of this issue are as follows:
Total applied for - $2,308,404,000
'fotal accepted
- $1,000,540,000

Range of accepted competitive bids:
High
Low
Average
(93 percent
Federal .{eserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

(includes $43,478,000 entered on a
noncompetitive basis and accepted in
full at the average price sl~wn below)
(Excepting one tender of $100,000)

- 95.987 Equivalent rate of discount approx. 3.958;~ per annum
- 95.965
"
""
II
II
3.980£"
"
- 95.972
tt
n
n
"
II
3.972{"
11]/
of the amount bid for at the low price was accepted)

Total
Total
Applied for
Accepted
$ 43,720,000
:$
32,150,000
650,426,000
1,751,861,000
2,251,000
14,251,000
50,066,000
89,892,000
8,645,000
9,645,000
1/+,383,000
20,023,000
154,878,000
216,443,000
9,543,000
14,718,000
4,268,000
18,445,000
8,961,000
10,017,000
19,140,000
31,210,000
45,829,000
88,179,000
$1,000,540,000
TOTAL
$2,308,404,000
On a Coupon issue of the same length and for the same amount invested, the return on
~laese bills would provide a yield of 4.15,~. Interest rates on bills are quoted in
t8i1llS of bank discount with the return related to the face amount of the bills payaIa.e at maturity rather than the amount invested and their length in actual number
~s related to a 360-day year. In contrast, yields on certificates, notes,and
lNw&are computed in terms of interest on the amount invested, and relate the number
~~YS remaining in an interest payment period to the actual number of days in the
perlQd, with semiannual compounding if more than one coupon period is involved.
)..1!,49

JQR RELEASE A.M. lIEWSPAPiRS,

1'\I.a.. Deeember 29, 19M.
D.o : . , D, 11M
RESUlI'S 0,. ftBASUU's WJ:IILY BILL ~

..u. ,

'!'be Treasury Depe.rtaent UIIOlIIlCtI4 lut .... DC tbat tbe '-'18... loll' , 'l'reuuri bills, aut aerte. to be _ add.1t1cmalllNR&e cd tb8 blUe .....
.,,4 the other serie. to be cIate4 Dec6llber 31, 1H6, widell .... oftWI.t _ .11• • •
were opened at the Pe4eral haem ...... aD J)aotllllber II. '1.....1'8 . . . . lmW . .
tl,200,OOO,OOO, or thereabouta, of 91..- billa . . tor t1,OOO,OOO~OOO, ..
ot 182-day bills. The details ot t.be two HI"188 are .. tol.1ow I

on..l, •

u.. ••

!WIlE 0., ACCEPtED

91..-

CCI4PE'l'rrm BIDS:

atw1.M ~ •

99 .021
99.013

btU.

AppraK.

~Se

t:
v. I

3.8'7.

:S.86~ }/

111....,. f1rr...,. bUll

....

I.W

91...

"."

:!akO!!'r
11;1
•

fSJ:tML
I."
I ••'"

1et. of tile amauDt ot 9~ Mlla b14 ft:rr at ~ lav prloe . . M'.,...
9$ of' the 8WJI.t cd 182-4&7 bllla b14 'tor at tile law prt_ _ ...." . .

'1'O'1'AL

APPLIED JOB AIID ACCEI"DD BY J'&DBRAL UIDYB DU1'lUC!81

Maet
lev York

Phlla4elPUa
ClrIelud
R1cbnlaDd
AtlaDta

Cblcaco

Fts~sIf;600

1,601,11',000
26,2M,OOO
21,115,000
22,017,000
",0.3,000

288,154.,000

t'"R;b"ooo
:
t"¥,aIf,.
116,lBI,OOO
1,585,181,0(1)
I

U,aN,OOO z
21 ,115 ,000:
19,83",000 a
35,900,000 I

l!8,s.,.,OOO

1,851,000
58,",000
18,175,000
as ,.a,000

lU,_,OGO

4Z,a.1,000
5,719,000:
16,111,000
MUmeapolis
11,922,000
l.S,44.2,000 a
., .,tH~OOO
XaDau City
2',530,000
22,5!O,OOO s
11,111,000
J)al 'as
U,2!1,OOO
23,511,000 I
Il.m,OOO
San Jl'rancisco
87,58:s,QOO
Y,Ql5.000 I
'l1IM'TOl'A.W
$2,265,0.7,000
ii,200,a79,ooo t/ .,058,1U,OOO
!l Includes $23.'5,521,000 DGI&C~1t1ft teDIIrre aceepte4 ." tbe . . . . . ,..,._., . . .
kI Includes $91 ~,OOO DODCGI1pei;1tlw teD4era aooeptet a i.be ............_ fit " ...
1:1 On a oouparl lnu.e ot tbe . . . lAtIlaUl IDI1 fer tbe _ ...at. i.IIftfteI, . . . . . .
tbeae b1lls 1IOt1l4 lftri4e 11eU. of !J.~, tor t.be 91..- bllla# . . , • •, . . .
182-day bills. Iatereat. rate. CD blUe &1"8 quoted 111 ..... of _ _ . . . . . . .
the return related to the face ~ fd the btlla ~le -" . . . . . . . . . _
the 81IOUDt tDYe8'te4 aac1 their l.eDstb 1D utual. . . . .1" " , clap
~. In eaatrut, ,-telAa CD eeruncatee, .... , 8D4 baDIe 8ft . . . . . . . ia t.ot interest em the _ _t lanatecl, an4 reWe t!ae m . . of ..,. I I II'.S• • •
intereat ~t period to tbe actual DUIIIber ot ..,. 10 tbe per1ot, w.ltla -pi
I
oompQmd11l8 it IIOl'e t.ba CXMt COQpCID pen04 u iDol.......
St. touts

nw.a ..... .

)

TREASURY DEPARTMENT
IELEASE A.M. NEWSPAPERS,
~t December 29, 1964.

December 28, 1964

RESULTS OF TREASURY'S WEEKLY BILL OFFERING
Treasury Department announced last evening that the tenders for two series of
bills, one series to be an additional issue of the bills dated October 1, 1964,
) 'other series to be dated December 31, 1964, which ..,ere offered on December 21,
,~ened at the Federal Reserve Banks on December 28.
Tenders were invited for
~OO,OOO, or thereabouts, of 91-day bills and for $1,000,000,000, or thereabouts,
32-day bills. The details of the two series are as follows:
EOF ACCEPI'ED

.wE BIDS:
High

WW
Average

91-day Treasury bills
maturing April 1, 1965
Approx. Equiv.
Price
Annual Rate
99.026
3.853%
99.021
3.873i
99.023
3.867i!l

182-daY Treasury bills
maturing July 1, 1965
Approx. Equiv.
Price
Annual Rate
98.004
3.948%
97.998
3.960i
97.999
3.957~ !I

76% of the amount of 91-day bills bid for at the low price was accepted
of the amount of 182-day bills bid for at the low price was accepted

95%

L TENDERS APPLIED FUR AND ACCEPl'ED BY FEDERAL RESERVE DISTRICTS:

Applied For
Accepted
Applied For
Accepted
$ 35,987,000 $ 33,497,000
~ 10,096,000
$
4,096,000
1,607,174,000
776,186,000
1,585,753,000
800,701,000
26,284,000
11,284,000
9,851,000
4,851,000
27,115,000
27,115,000
58,283,000
22,083,000
22,077,000
19,837,000
16,275,000
6,225,000
44,043,000
35,909,000
33,443,000
25,846,000
288,254,000
135,574,000
193,428,000
57,408,000
42,847,000
35,779,000
16,535,000
14,535,000
17,922,000
13,442,000
7,994,000
5,319,000
24,530,000
22,530,000
18,681,000
15,874,000
41,231,000
23,511,000
21,135,000
7,735,000
cisco
87,583,000
66,015,000:
67,239,000
37,301,000
~~ALS
$2,265,047,000
$1,200,679,000 ~ $2,038,713,000
$1,001,974,000
$233,521,000 noncompetitive tenders accepted at the average price of 99.023
.es $97,594,000 noncompetitive tenders accepted at the average price of 97.999
, upon issue of the same length and for the same amount invested, the return on
•. ~ills would provide yields of 3896~, for the 91-day bills, and 4.09~, for the
12~y bills. Interest rates on bills are quoted in terms of bank discount ..,i th
IllJturn related to the face amount of the bills payable at maturity rather than
I~~t invested and their length in actual number of days related to a 360-day
:~ 'In contrast, yields on certificates, notes, and bonds are computed in terms
,mt~;rest on the amount invested, and relate the number of days remaining in an
~~t payment period to the actual number of days in the period, with semiannual
mpounding if more than one coupon period is involved.

!:~O

£I

- :3 -

and excha.nge tenders will receive equ.a.l treatment.

Cash adjustments vi1l be made

for differences between the par value of maturing bills accepted in exchanse and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the

or other disposition of the bills, does not have any exemption, as such, and lOll
fram the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code of 1954.

The bills are subject

For purposes of taxation the amount ot discount at which

Treasury bills are originally sold by the United states is considered to be interest.

Under Sections 454 (b) and 1221 (5) ot the InternaJ.. Revenue Code of 19M

the amount of discount at which bills issued hereunder are sold is not considered
to accrue until such bills are sold, redeemed or otherwise disposed of, and such
bills are excluded from consideration as capital assets.

Accordingly, the owner

of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid tor such
bills, whether on original issue or on subsequent purchase, and the amount actual.ly
received either upon sale or redemption at maturity during the taxable year for
which the return is made, as ordinary gain or 108s.
. Treasury Department Circular No. 418 (current reVision) and this notice, prescribe the terms of the Treasury bills and govern the conditions of their.ia.ue.
Copies of the circular may be obtained from any Federal Reserve BaDk or Branch.

- 2 -

decimals, e. g., 99.925.

Fractions

not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will

be supplied by Federal Reserve Banks or Branches ,on application therefor.
Banking institutions generally may submit tenders for account of customers
provided the names ot the customers are set forth in such tenders.

Others than

banking institutions will not be pemitted to submit tenders except for their
own account.

Tenders will be received without deposit from incorporated banks

and trust companies and from responsible and recognized dealers in investment
securities.

Tenders from others must be accompanied by payment of 2 percent ot

the face amount of Treasury bills applied for, unless the tenders are accompanied
by an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, follOwing which public announcement will be made by
the Treasury Department of the amount and price range of accepted bids.

Those

submitting tenders will be advised of the acceptance or rejection thereot.

The

. Secretary of the Treasury expressly reserves the right to accept or reject any
or all tenders, in whole or in part, and his action in any such respect shall be
for each issue
final. Subject to these reservations, noncompetitive tenders/for $~ or les8
~laJr1rlcrmakxlrlT

. . . .,

~~~/
UsJ,rlthout stated price from anyone

bidder will be accepted in full a.t the a.verage price (in three decimals) ot accepted competitive bids for the respective issues.

Settlement tor accepted ten-

ders in accordance with the bids must be made or completed at the Federal
Banks on

Janua_1965

Re8e~

, in cash or other immediately available funds or

in a like face amount of Treasury bills maturing

Janua~

196$

• cub

-; q

...lv,

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,

December 29, 1964

nxnxxxnxxx:xJ{tl\)liXXXXXXX:XXXXXX~m
TREASURY'S WEEKLY BILL OFFERING

The Treasury Department, by this public notice, invites tenders for two series
of Treasury bills to the aggregate amount of $2,100,000,000

, or thereabouts, for

cash and in exchange for Treasury bills maturing .....;;;J..;;;;a.;.;;nua=r...Y
""'-$l"'!!7+-.-1...96....5--._., in the

&mOun'

of $2,100;338,000 , as follows:

til
XWX

91 -day bills (to maturity date) to be issued
in the amount of $1,100,000,000

, or thereabouts, represent-

tf»

ing an additional amount of bills dated
and to mature

April W65

amount of $ 90l'illfOOO

JanuarY2!:1965

october~1964

, originally issued in the

, the additional and original bills

to be freely interchangeable.
182 -day bills, for $1,000,000,000

(MJ

JanUar~1965

,or thereabouts, to be dated

fHf
, and to mature

July

•

The bills of both series will be issued on a discount basis under competitive
and noncompetitive bidding as hereinafter provided, and at maturity their face
amount will be payable without interest.

They will be issued in bearer form only,

and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and
$1,000,000 (maturity value).
'!'enders will be received at Federal Reserve Banks and Branches up to the
closing hour, one-thirty p.m., Eastern Standard time, Monday, January 4,
Tenders will not be received at the Treasury Department,

1965

XiBi
Washington. Each tender

must be for an even multiple of $1,000, and in the case of competitive tenders the
price offered must be expressed on the basis of 100, with not more than three

•

TREASURY DEPARTMENT

=
December 29, 1964
FOR IMMED IA TE RELEASE

TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$2,100,000,000,or thereabouts, for cash and in exchange for
Treasury bills maturing January 7, 1965,
in the amount of
$2,100,338,000, as follows:
91-day bills (to maturity date) to be issued
in the amount of $ 1,100,000,000, or thereabouts,
additional amount of bills dated Oc tober 8, 1964,
mature Apr i 1 8,1965,
originally issued in the
$901,176,000, the additional and original bills
interchangeable.

January 7, 1965,
representing an
and to
amount of
to be freely

182 -day bills, for $1,000 ,000 ,000, or thereabouts, to be dated
January 7, 1965, and to mature
July 8, 1965.
The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided, and at
maturity their face amount will be payable without interest. They
will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000
(maturi ty value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty p.m., Eastern Standard
time, Monday, January 4, 1965.
Tenders will not be
received at the Treasury De~artment, Washington. Each tender must
be for an even multiple of $1,000, and in the case of competitive
tenders the price offered must be expressed on the basis of 100,
with not more than three decimals, e. g., 99.925. Fractions may not
be used. It is urged that tenders be made on the printed forms and
forwarded in the special envelopes which will be supplied by Federal
Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of
customers provided the names of the customers are set forth in such
tenders. Others than banking institutions will not be permitted to
submit tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
D-1451

- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which puhlic
announcement will be made by the Treasury Department of the
amount and price range of accepted bids. Those submitting tenders
will he advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept nr
reject any or all tenders, in whole or in part, and his action in
any such respect shall be final
Subject to these reservations,
noncompetitive tenders for each issue for $200,000 or less without
stated price from anyone bidder will be accepted in full at the
average price (in three decimals) of accepted competitive hids
for the respective issues. Settlement for accepted tenders in
accordance with thp bids must be made or completed at the Federal
Reserve Banks on January 7, 1965, in cash or other immediately
available funds or in a like face amount of Treasury bills
maturing
January 7, 1965. Cash and exchange tenders will
receive equal treatment. Cash adjustments will be made for
differences hetween the par value of maturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury billS, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and lOBS from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject to
estate, inheritance, gift or other excise taxes, whether Federal or
State, but are exempt from all taxation now or hereafter imposed on
the prinCipal or interest thereof by any state, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bil13 are originally sold by the United States is considered to be
interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills are
sold, redeemed or otherwise disposed of, and such bills are excluded
from cor.~ideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between
the price p8td for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treel su ry {)r:pilrtment Circu lar No. 418 (current revision) and this
notice presc ribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained fron
any Rederal Reserve Bank or Branch.
000

The Treasury Department today said that it has closed four

antidumping cases involving Japanese steel products on the basis of
no sales in this country at less than fair value, within the meaning
of the Antidumping Act.
Three of the cases arose from complaints by American steel companies,
and were closed after the companies withdrew the complaints.

One case

had been instituted by the Treasury itself.
Two cases, one involving welded standard steel pipe and the other
cold rolled steel sheet, were instituted by complaints from United states
Steel Oorporation.

A third, involving hot rolled steel sheet, was

instituted by complaint from Kaiser Steel Corporation.

In these cases

the Treasury investigations covered only the periods dealt with in the
complaints.

These were filed in late 1962 and early 1963, and all entries

complained of have been appraised.
Under these circumstances no dumping duties could have been collected
on these entries even if the Treasury decision had been affirmative and
followed by a Tariff COIImlission decision of injury to American industry.

In each of these cases the complainant has now vdthdrawn its complaint.
The fourth case, involving wire strand, vms instituted early this year
on report of the New York appraiser.

There has been no American industry

participation in the processing of the case.
In commenting on the length of time during which three of the cases
had been pending, Assistant Secretary of the Treasury Reed stated:

"In the

future when cases of this sort arise, the provisions of the recently publishe
amendments to the regulations under the Antidumping Act relating to making
information available and confrontation should operate to make possible
,3~:eec;iel' ~;ec::'sioL,S.~'

7~le amended regulations go into effect January 3, 1965.

TREASURY DEPARTMENT

December 29, 1964
FOR IMMEDIATE RELEASE
TREASURY CLOSES FOUR ANTIDUMPING CASES
The Treasury Department today said that it has closed four
antidumping cases involving Japanese steel products on the basis
of no sales in this country at less than fair value, within the
meaning of the Antidumping Act.
Three of the cases arose from complaints by American steel
companies, and were closed after the companies withdrew the
complaints. One case had been instituted by the Treasury itself.
Two cases, one involving welded standard steel pipe and the
other cold rolled steel sheet, were instituted by complaints from
United States Steel Corporation. A third, involving hot rolled
steel sheet, was instituted by complaint from Kaiser Steel
Corporation.
In these cases the Treasury investigations covered
only the periods dealt with in the complaints. These were filed
in late 1962 and early 1963, and all entries complained of have
been appra ised.
(~der

these circumstances no dumping duties could have been
collected on these entries even if the Treasury decision had been
affirmative and followed by a Tariff Commission decision of
injury to American industry.
In each of these cases the
complainant has now withdrawn its complaint.
The fourth case, involving wire strand, was instituted early
this year on report of the New York appraiser. There has been no
American industry participation in the processing of the case.
In commenting on the length of time during which three of
the cases had been pending, Assistant Secretary of the Treasury
Reed s ta ted:
"In the fu ture when cases of this sort arise, the
provisions of the recently published amendments to the regulations
under the Antidumping Act relating to making information available
and confrontat ion should operate to make poss ib le speed ier dec is ions."
The amended regulations go into effect January 3, 1965.
000

D-1452

TREASURY DEPARTMENT

December 31, 1964
FOR lllMEDIATE RELEASE
WITHHOLDING OF APPRAISEMENT ON
GALVANIZED WARE

The Treasury Department is instructing customs field officers
to withhold appraisement of galvanized ware from Canada, manufactured
a nd/ or exported by General Steel Hares Limited, Canada, pending a
determination as to whether this merchandise is being sold in the
United States at less than fair value.

Notice to this effect is

being published in the Federal Register.
Under the Antidumping Act, determination of sales in the United
States at less than fair value would require reference of the case
to the Tariff Commission, which would consider whether American industry was being injured.

Both dlllllping price and injury must be shown

to justify a finding of dumping under the law.
The complaint in this case was received on November 30, 1964,
and was made by Vlilliam R. Noble, Esquire, Washington, D. C., on behalf of the Galvanized Ware Manufacturers Council.

000

TREASURY DEPARTMENT
(

ill

December 31, 1964
FOR IMMEDIATE RELEASE
WITHHOLDING OF APPRAISEMENT ON
GALVANIZED WARE
'rhe Treasury Department is instructing customs field officers
to withhold appraisement of galvanized ware from Canada, manufactured
and/or exported by General Steel Hares Limited) Canada, pending a
determination as to whether this merchandise is being sold in the
United States at less than fair value.

Notice to this effect is

Both dumping price and injury must be shown

to justif'y a finding of dumping under the law.
The complaint in this case was received on November 30, 1964,
and was made by I-lilliam R. Noble, Esquire) Washington, D. C., on behalf of the Galvanized Ware Manufacturers Council.

000

(c)

The amortised cost basis of the security surrendered on the books of the
subscriber it) $100.50 (per $i.OO face value). (It is assumed that the
security surrendered. was bOUGht at a price above $100.50 and that the
origino.l premium ",as reduced. prorata over the pert ad from purchase date
to Ilk1.turity. )

The sum of the [E,l.r rnc.yl\,.:t value of the security offered by the Treasury and
the payment to the su1)scriber is $99.50 + $.80 or $100.30. This is less than
the cost busis of the 1 C;,3UC surrendered, therefore, no gain is recognized.
The new issue ",U.l be cnten'c. on t,h~ books of the subscriber at a. cost basis
of $99.70, the cost 'basis of the issue surrendered less $.80. The gain or loss
between th1,9 cost bo:-;:ls nnd the l)roceeds of a subsequent sale or redemption
of the new issue 'l.'1~1 be a capital gHin or loss to all investors, except those
to whom the sec\.,ri tic:, dr·::! "tack in trade. Under present law, if the combined
time that the seclLri ty ::;un'endereri and the new security received in exchange
were held exceeds 6 months, the capital gain or loss is long-term, otherwise
it is short-term.

The assumptions arr~ the se:.me as 1 n example 1 except that the payment
(discount) to the sllbseriber is n01l $1.20 (per $100 face value) iDstead of
$.80 in example 1.
The sum of the fair ma,~ket valu," of the new secu:rJ ty re~c1ved ill exchange by
the subscriber plus the $1. 20 p.~yment (discount) is $100.70. This exceeds
the cost 'basis of tl1r~ t;t:~11.t'ity .8UlTcCldered by $.20. Tb1s excess is a
recognized gain rep).:--tn1)lt, 101' the y.~E\r in \-Ihich the exchange takefl place.
The cain is a capital ga.Jn except to those to whom the securities are stock
in trade. Under r,relent 1E.\{ 1 if the time the security surrendered was held.
exceeds 6 months,. 'L:-", en pj.~e,J gain is long-term, otherwise it is short-term.
The 6ubbcriber 1-T.111 ::8,!,:!.'y ',:he ))8\'; issue l"eceived in exchange at a coat basiS
e9ua1 to the basis of tjwlc~ue G1.e-rendr:rcd ($100.50), less the payment
($1.20), plus the tU[]c>unt ',:Fthe recognized gain ($.20), or ($100.50
$1.20 + $.20) :p 99.~)CI.

The assumptions arc U'!(; ,;lL:;(! af.i .La r,xo.rnple 1, except that the cost basis on
the books of the sub13cri':Jer', of the securi ty surrendered is $99.00 (per $100
face value) instead. of :))100.50 in cXllll1:ple 1.
The sum of the f,:l.i I l'>9.rLct ·Jlt~:.lt: of the nell issue received in exchange by the
subDcrlbcr plus the 4, 80 l-'ilyj;~:nt (d:1scount) is $100.30 (as in example 1). This
exceeds the 890.00 cv~c bel'.,l£; lJy ;\orc~ thElU $.80. However, the amount of the '
gain reporwblt; !'or t1.e year of' tlw e.i:cnange is $.80, Since the amount of gain
recogn1zeJ cannot lJ(:'~f·.i th,~ ;J.fllc~UJ"; of the puynlent. The nature of the
recognized gRin r,nu ) li, ';'e'j,iru~nt 1;3 the /o&Hle af) in example 2.

In this ''::!:l.~;f.:) the c,1J.bLCribe:r ',iill enter the new security rec~ived in exchange
on his books fit *~9.00} the Sa;fle cost baSis as the security surrendered.

Statement Concerning Recognition of Gain or
Loss For Federal Income Tax Purposes
January 1965 Advance Refunding
Gain or loss, if any, upon exchanges of the 2-5/8% bonds of 1965, must be
fully recognized under the Internal Revenue Code.
Pursuant to the authority of Section 1037(a) of the Internal Revenue Code
no gain or loss shall be recognized for Federal income tax purposes solely on
account of the exchange of the remaining seven issues eligible for exchange in
this advance refunding; provided, however, that Section 1031(b) of the Code requires recognition of any gain realized on such exchanges to the extent that
money (other than interest) is received by the security holder in connection
with the exchange as indicated in the following paragraph.
If a cash payment on account of the issue price of the new securities is
paid to the investor, and such amount (discount) plus the fair market value !I
of the new securities exceeds the cost basis to the investor of the securities
exchanged, such gain (but not to exceed the amount of the payment) must be
recognized and accounted for as gain for the taxable year of exchange. The
investor will carry the new securities on his books at the same amount as he
is now carrying the old securities except that he will reduce the cost basis
by the amount of the payment and increase it by the amount of the gain recognized. If the fair market value of the new securities plus the amount of the
payment does not exceed the cost basis of the old securities, the basis of the
new securities will be the cost basis of the old securities reduced by the
amount of the payment. Gain to the extent not recognized in accordance with
the above (or loss), if any, upon the old securities surrendered in exchange
will be taken into account upon the disposition or redemption of the new securities. (See examples following the next paragraph.)
If a premium is paid by the subscriber no gain or loss will be recognized;
but his tax basis in the new securities will be his cost basis of the old
securities increased by the amount of the premium.
Examples of Federal income tax treatment where a bond is offered by the Treasury
with a payment (other than the accrued interest adjustment) to the investor.
1.

Assum~

that:

(a)

The fair market v-dJue of the secu:rity offered by the Treasury on the date
the 6ubscrlFtion in £a:bmi tted is $99.50 (per $100 face value).

(b)

The payment ':·0 the subscriber (discOlmt) on account of $100 issue price
is $.80.

The mean of the bid and asked quotations on date subscriptions are submitted.

TABLE NO. 2
Investment returns in the January 1965 Advance Refunding
Approximate reinvestment rate
y
for the extension period

Approximate investment yield
from 1/15/65 to maturity y
Securities eligible
for exchange

2-5/8rip Bond

2/15;65

Nov. 1965 - Nov. 1967
Maturities:
3-1/2% Note 11/15/65
11/15/65
4% Note
2/15/66
3-5/8% Note
2/15/66
3-7/8% Note
5/15/66
3-3/4% Bond
8/15/67
3-3/4% Note
3-5/8% Bond 11/15/67

4rip Bond : 4-1/Srip Bond: 4-1/4rip Bond
2/15/70 ~ 2/15/74
: S/15/87-92 '0'
• to first call
!
: or matur1ty

4~ Bond : 4-l/Srip Bond : 4-1/4rip Bond0'

2/1fi/70 : 2/15/74
:

.
-

: 8/15/87-92 3
: To first:
To
:
maturity
call

4.16%

4.23%

4.24%

4.16%

4.23%

4.24~

4.24%

4.1S
4.18
4.18
4.18
4.18
4.18
4.17

4.24
4.24
4.24
4.24
4.24
4.24
4.24

4.25
4.25
4.25
4.25
4.25
4.25
4.25

4.23
4.24
4.23
4.24
4.25
4.31
4.37

4.28
4.28
4.28
4.28
4.29
4.32
4.35

4.27
4.27
4.27
4.27
4.27
4.28
4.29

4.26
4.27
4.26
4.27
4.27
4.28
4.29

Office of the Secretary of the Treasury
Office of Debt Analysis

December 30, 1964

Yields to nontaxable holders (or before tax) on issues offered in exchange based on prices of eligible
issues (adjusted for payments on account of issue price). Prices are the mean of bid and ask quotations
at noon on December 29, 1964.
~ Rate for nontaxable holder (or before tax).
~ Reopening of an existing security.
!I Not eligible ~or nontaxable exchange privilege.

r\)

f)',

TABLE NO.1
Payments to and by the Subscriber in the January 1965 Advance Refunding

(In dollars per $100 face value)

Securities to
be exchanged

Amounts to be paid to or by subscribers
Price adjustment
: Accrued interest
payment
: to January 15, 1965 : Net amount to be
:!/
to be paid

•
To
•
~
:subscr.iber:sub§c;riberl
-ib:
El.
:subscriber:subscriber.
27 . ~
:subscr ere subscrj

2 5/8~ Bond 2/15/65 ~
.600000
Nov. 1965 - Nov. 1967 Maturities:
~ Note 11/15/65..
.450000
4~ Note 11/15/65..
.900000
3 5/8~ Note 2/15/66
.400000
3 7/8; Note 2/15/66
.700000
3 3/4~ Bond 5/15/66
.500000
3 3/4~ Note 8/15/67
.050000
3 5/8~ Bond 11/15/67
2 5/8~ Bond 2/15/65 ~
.650000
Nov. 1965 - Nov. 1967 Maturities:
Note 11 15 65..
.500000
~
Note 11/15/65..
.950000
3 5/8~ Note 2/15/66
.450000
.750000
3 7/8~ Note 2/15/66
.550000
3 3/4~ Bond 5/15/66
3 3/4~ Note 8/15/67
.100000
3 5/8~ Bond 11/15/67

For the 4; Bond 2/15/70
1.091372

.300000

.589779
.674033
1.507133
1.611073
.631906
1.559103
.610843

1.039779
1.574033
1.907133
2.311073
1.131906
1.609103
.310843

FOr the 4 1/8~ Bond 2/15/74
1.091372
1.741372

.250000

For
2 5/8~ Bond 2/15/65 ~
.250000
Nov. 1965 - Nov. 1967 Maturities:
~ Note 11/15/65 ••
.400000
4~ Note 11/15/65..
.050000
3 5/8j Note 2/15/66
.450000
3 7/8~ Note 2/15/66
.150000
3 3/4~ Bond 5/15/66
.350000
3 3/4~ Note 8/15/67
.800000
3 5/8~ Bond 11/15/67
1.150000

.589779
.674033
1.507133
1.611073
.631906
1.559103
.610843

1.089779
1.624033
1.957133
2.361073
1.181906
1.659103
.360843

the ~ Bond 8/15/87-92
1.091372 1.766984
.589779
.674033
1.507133
1.611073
.631906
1.559103
.610843

1.766984
1.766984
1.766984
1.766984
1.766984
1.766984
1.766984

Office of the Secretary of the Treasury
Office of Debt Analysis

Payment on account of purchase price of offered securities.
On securities exchanged.
3/ On securities offered.
!J Not eligible for nontaxable exchange privilege.
~

1.691372

.9256:
1.57n~

1.0439l
.70981
.3059:
1.4850'

1.00781
2.30614

December 30, 196

- 2 among the various eligible issues, cash adjustments will be made to provide all
subscribers wi th appropriate~ attractive opportunities. The cash and interest
adjustments are shown in Table 1 attached.
The payment and delivery date :for the new securities is January 19, 1965.
All. unmatured coupons should be attached to bearer securities presented for exchange. If a net amount is payable to the subscriber (see Table 1) it will be
made following the acceptance of surrendered bearer securities or the discharge
of registration of registered securities. I:f a net amount is payable by the subscriber it should accompany the subscription.
A holder o:f the outstanding eligible securities can compare the interest he
will receive as a result o:f exchanging now (plus or minus auy payment, other thaD

the adjustment of accrued interest) with the interest he is current~ receiv1ng
on the eligible issues plus what he might expect to obtain by reinvesting the
proceeds of the eligible securities at maturity. The approximate investment y1el~
to the holder who makes the exchange is shown in column 2 o:f the attached Table 2.
The mjnimum rate of reinvestment return that a holder who does not make the exebu
would instead have to earn for the extension period, in order to equal the inTe.t·
ment yield that would be received by mald ng the exchange, is shown in the columns
o:f Table 2 headed "Approximate reinvestment rate :for the extension period." FOr
example, it the 3-3/4r1p notes of 8/15/67 are exchanged :for the 4-l/8r1p bonds ot
2/15/74, the investor receives 4-l/8r1p for the entire 9 years and 1 month plu8
$0.10 (per $100 face value) immediate~. I:f the exchange is not made, a 3-3/4Ip
rate will be received until August 15, 1967, requiring the reinvestment of the
proceeds of the 3-3/4 I s o:f August 1967 at that time at a rate of at least 4.52~
for the remaining 6 years end 6 months, all at compound interest to average out
to a 4-l/8~ rate :for 9 years and 1 month plus the $0.10 immediate payment.

Attachments

TREASURY DEPARTMENT

December 30, 1964

FOR DH:DIATE RELEASE
ADVANCE REFUNDING OFFER

The Treasury today announced that it is offering holders of the 2-5/8~ bond
due February 15, 1965, and seven other selected note and bond issues maturing
from November 1965 to November 1967 an opportun1 ty to extend the maturity of the1
holdings at attractive yields.
The Treasury also said that it will shortly be offering $1.5 to $2.0 billion
of June Tax AntiCipation Bills.
The securities eligible for exchange and those being offered in the advance
refunding are as follows:
Securities eligible for exchange
and their maturity dates

2-5/8'fo

bonds

2/15/65

3-1/2'fo notes
4'fo notes
3-5/8'fo notes
3-7/8'fo notes
3-3/410 bonds

11/15/65
11/15/65
2/15/66
2/15/66
5/15/66
8/15/67
11/15/67

3-3/4~ notes

3-5/acf,

bonds

Securities offered in exchange
and their maturity dates

4~ bonds

2/15/70

4-1/~ bonds

2/15/74

4-1/4'fo

bonds
(reopened issue)

8/15/87-92

The public holds $3.4 billion of the 2-5/8'fo bonds of February 15, 1965, and
about $550 million is held by official accounts. This issue is so near to final
maturity that its holders are not being offered the nontaxable exchange privilege
that is, as has been customary, being made available to the other seven 1ssues
eligible for this advance exchange.
The seven eligible issues maturing from November 1965 to November 1967 invol
$18.7 billion of public holdings and official accounts hold an additional 8DIQWlt
about $10.4 billion of these maturities. No gain or loss shall be recognized tor
Federal income tax purposes solely on account of the exchange of these iSSues. A,
:f'u11er statement of the treatment of the exchange for tax purposes is given in an
attachment hereto.
The 4-1/8'fo bonds of 1974 and the 4-1/4~ bonds of 1987-92 contain the usual
proviSion for redemption at par value prior to maturity in payment of Federal
estate taxes.
Exchange subscription books will be open for five days, January 4 - 8. The
exchanges will be made on the basis of par for par with accrued interest adjustments as of January 15, 1965. Because of d1fferences in coupon and maturity

D-1453

TREASURY DEPARTMENT
(

!OR DIoiEDIATE REI.EASE

December 30, 1964
ADVANCE REFUNDING OFFER

The Treasury also said that it vill shortly be offering $1.5 to $2.0 billion

or June Tax Anticipation Bills.

The securities eligible for exchange and those being offered in the advance
ref\mding are as follows:
Securi ties eligible for exchange
and their maturity dates
2-5/8~ bonds

2/15/65

3-l/2~ notes
4~ notes
3-5/~ notes
3-7/8~ notes
3-3/4~ bonds
3.3/4~ notes
3.5/8~ bonds

11/15/65
ll/lS/65
2/15/66
2/15/66
5/15/66
e/15/67
11/15/67

Securities offered in exchange
and their maturity dates

4~ bonds

2/15/10

4-l/~ bonds

2/15/74

4-l/4~ bonds

8/15/87-92

(reopened issue)

The public holds $3.4 billion of the 2-5/8~ bonds of February 15, 1965, and
about $550 million is held by official accounts. This issue is so near to final
maturity that its holders are not being offered the nontaxable exchange privilege
that 1s, as has been customary, being made available to the other seven issues
eligible for this advance exchange.

The seven eligible issues maturing from November 1965 to November 1967 involve
$la.7 billion of public holdings and offiCial accounts hold an addi tiona! amount of

about $10.4 billion of these maturities. No gain or loss shall be recognized for
Federal income tax purposes solely on account of the exchange of these issues. A
fuller statement of the treatment of the exchange for tax purposes is given in an
attachment hereto.
The 4-1/8~ bonds of 1974 and the 4-l/4~ bonds of 1987-92 contain the usual
for redemption at par value prior to maturity 10 payment of Federal
estate taxes.

P~V1sion

Exchange aubscription books vill be open for five daye, January 4 - 8. The
eXchanges will be made on the basis of par for par vi th accrued interest adjustlllents as of January 15, 1965. Because of differences in coupon and maturity

D-1453

- 2 tbe variou. eligible i.sue., cub adjustments will be ...de to provide all
.ub.criberl witb appropriately attractive opportunitie.. The cuh and interelt
adju.tmentl are .bovn in !able 1 attached.

&IIIODg

The ~t and deli very date for the new securi tiel i. JUWl1"1 19, 1965.
All unmatured coupons should be attached to bearer .ecuritie. presented for excbange. If a net amount il payable to tl:l.e subscriber (I.e 'lable 1) it will be
made follov1.ng tbe acceptance 01' surrendered bearer lecuri tie. or the di.eharse
01' registration of registered s.curi tie.. If a net amount il payable by the lub •
• criber it should accompany the subacription.
A holder of tbe outatanding eligible securities

compare the interelt he
u\y ~t, other tbu
the adjultment ot accrued intere.t) witb the interest he is currently receiv1q
on the eligible issue. plul wbat be might expect to obtain by reinvesting the
proceeds of the eligible securitiea at maturity. Tbe approx1llate inve.tment )'iel
to the holder who makes tbe exchange i. shown in column 2 of the attached Table 2
The m1nimum rate of reinvestment return that a holder wbo does not make the ex~
would in.tead have to earn for the extension period, in order to equal the invelt
ment yield that would be received by making the exchange, i8 shown in the colwaw
of Table 2 headed "Approximate reinvestment rate for the extension period." For
example, it the 3-3/4~ notes of 8/15/67 are exchanged for tbe 4-l/8~ bonds 01'
2/15/74, the investor receives 4-l/8~ for the entire 9 year a and 1 month plul
.0.10 (per $100 face value) immediately. If the exchange is not made, a 3-3/v"
rate will be received until August 15,1967, requiring tbe reinvestment ot the
proceeds 01' tl:l.e 3-3/4's of August 1961 at that time at a rate of at least 4.3~
for the remaining 6 years and 6 montha, all at compound interest to average out
to a 4-1/8"" rate for 9 years and 1 month plus the $0.10 immediate payment.
caD

w1ll receive as a result of exchanging now (plus or minu.

Attachments

TABLE NO.1
Payments to and by the Subscriber in the January 1965 Advance Refunding
(In dollars per $100 face value)
Amount. to be paid to or by .ubscribers
Price adjustment
: Accrued intere.t
I
payment
: to January 15, 1965 : Net amount to be paid
!I
:
to be paid
:

Securities to
be exchanged

••

To
_

•'!::Il..
Rv

. ' - - - - - .- - - •
To
•
~

~subscriber!subscr1ber:'Ub'!/iber:sub~r1ber:SUbscr1ber~ subscriber

'Dr

5/sdp Bond 2/15/65 ~
.600000
lv. 1965 - Nov. 1967 Maturities:
1
lote 11 15 65..
.4Soooo
lote 11/15/65..
.900000

3S/8'f. Note
a 7/8~ Note

2/15/66
2/15/66
3 3/4Ef, Bond 5/15/66
3 '5/4~ Note 8/1S/67
'5 S/8~ Bond 1l/lS/67

s/SJ Bond

.400000
.700000
.SOOOOO
.050000

.300000

the
!oDd 2/15/70
1.091372
.589779
.674033
1.507l33
1.611073
.631906
1.559103
.610843

lOr the 4

2/15/65
.650000
v.1965 - Kov. 1967 Matur1t1e.~
Note II 15 65..
.500000
t Note 11/15/65..
.950000
,'5 5/8~ Note 2/1S/66
.450000
3 7/8~ Note 2/15/66
.7SOOOO
'5 j/4~ Bond 5/15/66
.550000
'5 j/4~ Note 8/15/67
.100000
'5 5/8~ Bond 1l/15/67

.250000

1/8~

1.691372
1.039779
1.S74033
1.9071.33
2.311073
1.131906
1.609103
.310843

Bond 2/15/74

1.091372

1. 7{l372

.589779
.674033
1.507133
1.611073
.631906
1.5S9103
.610843

1.089779
1.624033
1.9571.33
2.361073
1.181906
1.659103
.360843

For the

Bond 8/15/87-92

5/8j Bond 2/15/65 ~
IV. 1965 - Nov. 1967 Maturities:

.250000

1.091.372

1.766984

.925612

Note U/15/65 ••
Note n/1S/65..
3 5/8", Note 2/1S/66
'5 7/8~ Note 2/15/66
3 3/4Ef, Bond S/15/66
3 '5/4Ef, Note 8/15/67
3 5/8J Bond 1l/15/67

.400000

.589779
.674033
1.507l33
1.611073
.631906
1.S59103·
.610843

1.766984
1.766984
1.766984
1. 766984
1. 766984
1.766984
1.766984

1.577205
1.042951
.709851
.305911
1.485078
1.007881
2.306141

.0soooo
.450000
.150000
.3SOOOO
.800000
1.150000

lice ot the Secretary ot the Tre••ury
Ottice ot Debt Analyst.

I Payment on account of purchase price ot offered securities.
I On securities exchanged.
/. On securities ottered.

Rot eligible tor nontaxable exchange privilege.

December 30, 1964

TABLE NO.2
Investment returns in the January 1965 Advance Ref'unding
Approximate reinvestment rate
y
for the extension period

Approximate investment yield
from 1/15 / 65 to maturity y
Securities eligible
for exchange

4~ Bond : 4,-1/fYf, Bond : 4-1/4~ Bond

~/15/70 ~ 2/15/74
~

2-5/s1t Bond

2/15/65

: 8/L;/S7-92 ~
. to first caJ..l

: or

4~ Bond : 4-l/s1t Bond : 4-1/4~ Bond
2/1~/70 : 2/15/74
: 8/15/87-92

: To first:
To
:
:
maturity
ca.ll

MI&~1tl

4.16"

4.23"

4.24"

4.l6~

4.2~

4.24~

4:.244(,

4.18
4.18
4.18
4.18
4.18
4.18
4.17

4.24
4.24
4.24
4.24
4.24
4.24
4.24

4.25
4.25
4.25
4.25
4.25
4.25
4.25

4.23
4.24
4.23
4.24
4.25
4.31
4.37

4.28
4.28
4.28
4.28
4.29
4.32
4.35

4.27
4.27
4.27
4.27
4.27
4.28
4.29

4:.26
4.27
4.26
4.27
4.27
4.28
4.29

.ov. 1965 - Nov. 1967
Maturities:
3-1/2f1. JIote ll/15/65
ll/15/65
.~ Kote
2/15/66
3-S/wf. Bote
2/15/66
3-7/wf. Bote
5/15/66
3-3/4~ Bond
8/15/67
3-3/4';" Bote
3-S/s1t Bond ll/15/67

Office of the Secretary of the Treasury
Office of Debt Analysis

!I
Y
2f
!I

December 30, 1964

Yields to nontaxable holders (or before tax) on issues offered in exchange based on prices of eligible
issues (adjusted for payments on account of issue price). Prices are the mean of bid and ask quotations
at noon on December 29, 1964.
Rate for nontaxable holder (or before tax).
Reopening of an existing security.
Bot eligible for nontaxable exchange privilege.

Statement Concerning Recognition of Gain or
Loss For Federal Income Tax Purposes
January 1965 Advance Refunding
Gain or loss, if any, upon exchanges of the 2-5/8~ bonds of 1965, must be
fully recognized under the Internal Revenue Code.
Pursuant to the authority of Section 1037(a) of the Internal Revenue Code
no gain or loss shall be recognized for Federal income tax purposes solely on
account of the exchange of the remaining seven issues eligible for exchange in
this advance refunding; provided, however, that Section 1031(b) of the Code requires recognition of any gain realized on such exchanges to the extent that
money (other than interest) is received by the security holder in connection
with the exchange as indicated in the following paragraph.
If a cash payment on account of the issue price of the new securities is

paid to the investor, and such amount (discount) plus the fair market value
of the new securities exceeds the cost basis to the investor of the securities

exchanged, such gain (but not to exceed the amount of the payment) must be
recognized and accounted for as gain for the taxable year of exchange. The
investor will carry the new securities on his books at the same amount as he
is now carrying the old securities except that he will reduce the cost basis
by the amount of the payment and increase it by the amount of the gain recognized. If the fair market value of the new securities plus the amount of the
payment does not exceed the cost basis of the old securities, the basis of the
new securities will be the cost basis of the old securities reduced by the
amount of the payment. Gain to the extent not recognized in accordance with
the above (or loss), if any, upon the old secur! ties surrendered in exchange
will be taken into account upon the disposition or redemption of the new securities. (See examples following the next paragraph.)

If a premium is paid by the subscriber no gain or loss will be recognized;
his tax basis in the new securities will be his cost basis of the old
securities increased by the amount of the premium.

but

~ples

of Federal income tax treatment where a bond is offered by the Treasury

with a payment (other than the accrued interest adjustment) to the investor.
1.

ASSUJ.DL

t.hat:

(a)

The fair mnrlH~t value of the security offered by the Treasury on the date
the sulHlcrlption 111 Gt:bm1tted 1s $99.50 (per $100 face value).

(b)

The payment to the subscriber (discount) on aCcOWlt

ot $100 1I!Isue price

1s $.80.

rr The lI1ean of the bid and asked quotations on date lSub.criptions are su1:m1tted.

(c)

The amortised co~t baBis of the security surrendered on the books ot the
subscriber 10 $100.50 (per $100 face value). (It 1s assumed that the
security ~urrendered was bought at a price above $100.50 and that the
original prcruium ~s reduced prorata over the pertod from purchase date
to mnturity.)

The sum of the faIr market value of the security offered by the Treasury and
the payment to the cubscriber is $99.50 + $.80 or $100.30. This 18 less thaD
the cost ba~;1s of the 1s~\le surrendered, therefore, no gain i8 recognized.
The new issue will be entered on the booko of the subscriber at a cost baSis
of $99.70, the cost bllsis 01' the issue surrendered less $.eo. The ga1n or 10••
between this cost bonis nnd the l)rOceeds of a subsequent sale or redemption
of the new issue will be a cupital gain or loss to all investors, except those
to whom the securities are ~;tock 1n trade. Under prcsent la'll, if the combined
time that the security surrcndere~ and the new security received 1n exchange
were held exceeds 6 months, thc capital gain or loss is long-term, otherwise
1t 1s chort-term.

The assumptions are the snme us 1n example 1 except that the payment
(discount) to the s,Jbscriber is now $1.20 (per $100 face value) instead of
$.eo in example 1.
The SUIll of the fnir mal"ket valut: of the new securi ty reC'!e1ved in exchange by
the subncribcr plua the $1.20 p3.yment (discount) 1s $100.70. This exceeds
the cost basia of till! !lecurlty .9ulTcndered by $.20. This excess is a
recoeni zed gain rL'p,),~fihle for the y.~Br in which the exchange taker; place.
The cain is a capital gn:ln except to those to whom the securities are stock
In trade. Und('r l)r,~3(:nt 11\..... , if the time the security surrendered was held
exceedc 6 months,. "Lil,' copl eli] gain Is long-term, otherwise it is short-term.
The subLeri ber 11111 ::arl'Y "he new issue received in exchange at a coot basiS
e9uB1 to thc lJBCiG of thc .Lesue r,u:::-rend"rcd ($100.50), less the payment
($1.20), plus the runount uf the recognized gain ($.20), or ($100.50
$1.20 + $.20) $ 99.50.

The Bsoumption:; nrc the 1;U_':ij(~ Uti 1n pxo.mple 1, except that the cost basis on
the booko of the oubGcrl1)cI', of the securi ty ourrendered is $99.00 (per $100
face vulue) instefui of $100.50 in example 1.
The sum of the f'J1 t wir],(·t Vll11tt: ()f the 0('\1 ir;sue received in exchange by the
Bubceribt~r plu!:! the ~'.80 P"Yllv'nt (discount) io $100.30 (as in example 1). This
exceeds the ;;,~(J.()() CLJ:;t lJI",1ti Ly 1101"':, than t.eo. HOl-1ever, the amount of the
gain reporl.uLle for tIle year of tilt! exchunU;0 is $.80, since the wnount of gain
recof:ni :':~'J CDIHlot <::'C'::tol thl~ D.!TlvllUt 01' tht' po.ynlcmt. The nature of the
recognized £fl.in nflu 1 Lf; t.re~tlUt:nt 1s the tlfUne an in exnmple 2.
In this -:11:;e, thE: LubLcr1bcr \.Iill enter the new security reCt!i ved :l.n exchange
on bis lJooks fit $09.00, the flume cost basis as the 6~cur1ty surrendered.

Estimated Ownershi.p of Issues El1.gi.b1e for January 1965 Advance Re:f'und:1.ng Offer:1.ng
As of November 30, 1.964

(In millions of dollars)

Fe b .15 ,
1965

2~~~

Issues Maturing November 1965 Thru November 1961
---------:--~N~ov-em~b-e-r-l~5~,--~~----~~--~~~~~--~~~--~~

Total.:

Note

Commercial banks •••••••••••••••••••••
Mutual savings banks.................

$1,780
6

$ll,195
319

42
644

Insurance canpanies:
Life •••••••••••••••••••••••.•••••

Fire, casualty and marine ••••••••

19~ ~

i!J

iZi

Note

JAJ9-: _

Note

$1,180 $1,690 $1,265
28
27
63
2

63_

. _3.1

3
26

302

686
235
1,125
460
1,210
55
3.398

65
20
125
20
135
5
675

99
35
325
40
275
5
373

29
75
250
50
200
5
196

the public............

3,442

18,682

2,253

2,869

Federal Reserve Banks and
Government Investment Accounts ••••••

534

10,418

6,301

Total outstanding .•••••••••••••••••••

$3,976

Total, insurance companies.......
Corporate pension fUnds..............
Corporations.........................
Savings and loan associations........
State and local general fUnds........
State and local pension fUnds........
All other public investors...........

Total, held

244
35
900
40
120
15

IfiJ . mJ . . raJ . giL
Note

Note
$1,630
24

$1,180
18

8
25

105 _

$2,835
72

$1,415
81

6
19
J..53.. _ 145

35
175
5
448

63
20
50
40
100
5
455

159
35
125
100
125

164
25
50
115

616

25
634

2,133

2,649

1,931

4,072

2,775

1,901

611

319

361

828

$29,101 : $8,560 $2,954 $4,040 $3,260

$2,250

Office of the Secretary of the Treasury

!I Not eligible for nontaxable exchange privilege.
Note: Details may not add to totals shown due to rounding.

101
25
200

200

$4,433 $3,604

December 30, 19

Market Quotations on Outstanding U.S. Government Issues
Involved in the January 1965 Advance Refunding

(Dollars per $100 face value)

December 29, 1964
(Noon)

Description

Bid

December 30, 1964
(2:30 P.M.)

Ask

Bid

Ask

·....

99-27/32

99-29/32

99-27/32

99-29/32

3-1/2!'p Note, Nov. 15, 1965 •••••

99-19/32

99-21/32

99-39/64

99-43/64

2-5/8% Bond, Feb. 15, 1965

Note, Nov. 15, 1965 • ••••

100-2/32

100-4/32

100-2/32

100-4/32

3-5/~ Note, Feb.

15, 1966 • ••••

99-18/3 2

99-20/32

99-39/64

99-43/64

3-7/~ Note, Feb.

15, 1966 • ••••

99-27/32

99-29/32

99-31/32

3-3/4~ Bond, May

15, 1966 ••••••

99-21/32

99-23/32

99-22/32

99-24/3 2

3-3/4~ Note, Aug.

15, 1967 • ••••

99-5/32

99-9/32

99-6/32

99-10/32

3-5/~ Bond, Nov.

15, 1967 • ••••

98-28/32

98-30/32

98-29/32

98-31/32

4-1/4~ Bond, Aug.

15, 1987-92 ••

100-20/32 100-28/32

100-16/32

100-24/32

December 30, 1964
Office of the Secretary of the Treasury
Office of Debt Analysis
Y As reported to the Treasury by the Federal Reserve Bank of New York.

• 5 -

tllrowa out of a

j_.

f'1be govenaeat 1. well aware daat . . . .1-.:. .

..,loy... repr ••eat

val...1. r ...rveir of Oil1 ....

tale1lt.

aider.tioGa lIwolv". fINery effort w111

_de te

carry out thl. __, __ vith a .1Dt.a. of 1aceavea1...e

to the people conceraed."
[Further detail. are lacltlded i.a ta.. at:tacllatt baokaNUlld

.t.t ....

- 4 and the total payroll for the year by about $1 ..il11on.

ContlDuM

expans ion a lready planned would 1ncre... peak eapl0y88Dt by

1967 by more than 1,500 jobs over the 1964 peak and the payroll
would be more than $4 million greater.

In announcing the conaolidation, which i . effectlve
immediately and which will be carried out over the next •• veral

montha, Secretary Dillon said:
I made the deciaion to Mrge these two regiona
in line with President Jotmson'

drive for i.ncreased

economy and efficiency in government.

However, it

was never his intention, nor is it mine J to work aoy

hardship on the people concerned.

I think. a vital

part of the whole economy program i8 that it be
carried out with continuous consideration of that
fact.
The fact that over-all employment in the new
regiona~

office will be more than a hundred people below

the previous total for the two regions cOIlbined, does Dot
mean, and will not mean. that more than a hundred people .11

.. 1 -

taxpayers.

The others will be offered tranafer. to the

New York Regional Office, to other

In~l

levenue offices

in Boston or to offices elsewhere which haft vacancie ••
The new region will, wben the

consolidation 1s c<*plete

sometitDe this year. show a net reduction in

than a hundred positiona.

elllPl~nt

of lIOn

The aaore than 2,000 Internal Revenue

Service employees in the Boston District office and the nearby
Lawrence service center will not be affected.
Furthermore, employment at the Lawrence service center --

a8 aut:oawat:ic data proce.sing increases -- i8 elf1'ectecf to
riae sharply.
scheduled to

The Lawrence service center -- whLch ia
dIOVe

to new quarters at AndOV'ft' ....aaacbuaetta _.

will serve the entire new region as part of the .rger plan.

As a resuil, in 1965 peak employment at that center, both
temporary and pel'lD8tlent, will increase by more than 300 job.

- 2 Internal R.evenue Service center for electroaic data pa"oc••• lnl

at La¥reace,. Ma...chuutts.

Experience over tt. la.t tIM year.

in the opera tlan and aupervl.ioa of other ..nice centera,
however, baa ahown that tbl. wCMld DOt be oace. . .~.

. . . York

OIl

the ba.is of eM . .pen1• . ,

need. of the various cllatricta.

Special inv.stlpel. . t.ac.

vaa ••lected aa headquarter.

alleged corruption in the Manhattan aDd Brooklyn .. t.triota
during the peat year have clearly .beMa aerlous probl.... of

internal aupervisiexa requiring close aM canatant attenlloD.
Purther.ore, the workload,

c~lexttt.es

of teobalcal 1.aue. and

populatlan of the .. two diatricta _lee tbem the largeat and .oat
difficult to supervi.. In the entlre new region.
At pr. . .nt, about 400 regional e.ploye•• of tba Nortbeaat
legion are stationed 10 Boaton.

Aboat 200 of tbe.

vill continue to be e.plo,ed in a aub-off1c. at

Boaton for the convenience of

Deceaaber

~i~

York and Nortlle.ast Re.1onal Offic•• gf

The
~l

ab(>ut
RetJian

lC.U8;:~.r

lDtAlr:aal

1964

In._

U expected to ruu.lt in amwal .aY1",_ of

il#illiotl a year in uverbead coat..

~.lll

tn.

'I.

the Nortb Atlat1c

deal "ith lnternal Revenue . .ttars 111 the Stat••

of Connecticut. Haine, aa•• acnusetta, New Hampahlre, lew tort,

hhade la land, and Vermont.

Headquacterl 1\)1' Lite new

re~ion

will be 1n . . lorli.

TREASURY DEPARTMENT

January 4, 1965

HOLD FOR USE IN MORNING NEWSPAPERS
TUESDAY, JANUARY 5, 1965
TWO INTERNAL REVENUE SERVICE REGIONAL OFFICES MERGED
Treasury Secretary Douglas Dillon today announced that the
New York and Northeast Regional Offices of the Internal Revenue
Service have been consolidated into a sjngle regional office -the North Atlantic Region.
The merger is expected to result in annual savings of
about $1 million a year in overhead costs. The North Atlantic
Region will deal with Internal Revenue matters in the States
of Connecticut, Maine, Massachusetts, New Hampshire, New York,
Rhode Island, and Vermont.
Headquarters for the new region will be in New York. At
first it was thought that headquarters should be located in
Boston, in order to provide close supervision to the large
Internal Revenue Service center for electronic data processing
at Lawrence, Massachusetts.
Experience over the last two years
in the operation and supervision of other service centers,
however, has shown that this would not he necessary.
New York
was selected as headquarters on the hasis of the supervisory
needs of the various districts.
Special investigations into
alleged corruption in the Manhattan and Brooklyn districts
during the past year have clearly shown serious problems of
internal supervision requiring close and constant attention.
Furthermore, the workload, complexities of technical issues and
popula tion of the se two dis tr ic ts make them the large stand mos t
difficult to supervise in the entire new region.
At present, about 400 regional employees of the the Northeast
Region are stationed in Boston. About 200 of these will continue
to be employed in a sub-office at Boston for the convenience of
taxpayers.
The others will be offered transfers to the New
York Regional Office, to other Internal Revenue offices in
Boston or to offices elsewhere which have vacancies.

D-1454

- 2 The new region will, when the consolidation is complete
sometime this year, show a net reduction in employment of more
than a hundred positions.
The more than 2,000 Internal Revenue
Service employees in the Boston District office rtnd the nearhy
Lawrence service center will not be a(Lected.
Furthermore, employment at the Lawrence service center -as automatic data processing increases -- is expected to rise
sharply.
The Lawrence service center -- which is scheduled tu
move to new quarters at Andover, Massachusetts -- will serve the
entire new region as part of the merger plan. As a result, in
1965 peak employment at that center, both temporary and permanent, will increase by more than 300 jobs and the total payrol:
[or the year by about $1 million.
Continued expansion already
planned would increase peak employment by 1967 by more than
1,500 jobs over the 1964 peak and the payroll would be more
than $4 million greater.
In announcing the consolidation, which is effective
immediately and which will be carried out over the next several
months, Secretary Dillon said:

"I made the decision to merge these two regions
in line with President Johnson's drive for increased
economy and efficiency in government.
However, it
was never his intention, nor is it mine, to work any
hardship on the people concerned.
I think a vital part
of the whole economy program is that it be carried
out with continuous consideration of that fact.
"The fac t tha t over -a 11 employmen t in the new
regional office will be more than a hundred people below
the previous total for the two regions combined, does not
mean, and will not mean, that more than a hundred people
will be thrown out of a job.
"The governmen t is we 11 aware tha t experienced employees
represent a valuable reservoir of skill and talent.
For
that reason, as well as the human considerations involved,
every effort will be made to carry out this merger with
a minimum of inconvenience to the people concerned."

000

TREASURY DEPARTMENT

January 4, 1965

FOR IMMEDIATE RELEASE

TREASURY DECISION ON BICYCLES
UNDER THE ANTIDUMPING Per

The Treasury Department has determined that bic,ycles
from Hungary, manufactured by Pannonia, Budapest, Hungary,
are being, or are likelY to be, sold at less than fair
value wi thin the meaning of the Antidumping Act.
AccordinglY, this case is being referred to the United
States Tariff Commission for an injury determination.
Notice of the determination and of the reference of the
case to the Tariff Commission will be published in the
Federal Register.
The dollar value of imports received during the period
November 1963 to date was approximatelY $175,000.

TREASURY DEPARTMENT
4

January 4, 1965

FOR IMMEDIATE RElBASE
TREASURY IlBCISION ON BICYClES
UNDER THE ANTIDUMPING ACT

The Treasury Department bas determined that bic,ycles
fram Hungary, manufactured by Pannonia, Budapest, Hungary,
are being, or are likely to be, sold at less than fair
value wi thin the meaning of the Antidumping Act.
Accordingly, this case is being rei'erred to the United
states Tariff Commission for an injury determination.
Notice oi' the determination and of the reference of the
case to the Tariff Commission will be published in the
Federal Register.
The dollar value of imports received during the period
November 1963 to date was approximately $175,000.

roR HU.i.ASl!. !\ .11. !L ';J?M'~j ,
J!!!l:1Q!";i ::.. l)ti5.

1\t!!d&Y'

J...ry ", 1965

R£aJ1Jl'B OF 'l'R£AdURY' ~\ W"Ei:XLY BILL OmJUlll

35 porcct of tDe amount of ;/1..... b1lle b1d tor at the low price . . aoeepMA
92 perecot of the amount or lB2 _ _ bills b1c1 tor at tbe low pr1ce . . MOept14
'J'01'AL

T~ APP~D

K!:~ct

JOR AlID ACC.t:PfU') BY

DIO"1'ftICTS:

l~:'!s.tMS ~:1oo,ooo : ~pp¥'~"&:iS

!lev York

1,321,625,000
28,422,000
24,983,000
17.018,00Cl
3l,265,0t>J

105,325,000
16,M40,(X)():
24,558,000:
1.6,435,000:
21,,150,000:

1,54S,aa4,OOO
U,890,OOO
32,1.67,000
U,525,OOO
27.574,000

125,.ua,000:
54,539,000:
12,Of.7,(XX):
29,11J,OOO:
1.6,619,000

221.,aM,OOO
lS,790,000

.~ Prez1c1sco

296,W,OOO
42,027,000
17,856,000
35,547,000
26,799,000

108,571,000

TarAl.v

;~l,006,566,OOO

73,146,000:
./1.101,nO,<xx>!I

PbiladeJ.t;ilia

C1ewlMld
RlcbmoDd
Atlanta
Cilieaso
;>t. louis

Mtnn~£~

Ksnsaa City

0&J.\u

Fr.l)i:.;AAl. ~~

U,05O,@
16,010&,000

12,082,000
61,859,000
$2,020,224,000

823,16'"
I,."
7,."

8,.,.

9,m,.
58.....
9"'''

9,"'''

10,....
7,0lIJ,a

G,_"
$1,OO3,III,a

Inc~ ~\2.)9,6M,OOO DQQ~lt1vc tenclera ~ at tbe tmmIP prlce of ..
)€}('".~51,OOO noaeazqlftltlve tc:lderG accepted at tbe averap price of ....
On a COUpcll loouc of' the - - lent.'th and tor the . . . amrMIt i.r&veat.e4, tbe .....
these bills 'JOOl.d provide yiel48 of 3.Wfo, for t.Qe 91~ 'b1ll8, . . , • •, , . .
182-day bills. 1ntenat rate. OlD b1l.la are ~ 1n terms o£ baDk dlacaaat • • .
return :related to tbe taee amount of t.be b1ll.a ~le at. uatur1ty :ratbIr ta.a till
fiIi»OWlt tnveetcd aDd their leIlgt.b in actual ~r of da)'a related. to • ~ , .
In contl"DSt. yie.l& on certU1.estes, nates, aad bauda are COIIp.Ite4 1A ~ of JIll!
eat <Xl tile tnJUDt inYeated, and relate the l1WIber of
J'G'aiDiDl 1D • ~
~t f>eM.od to the actual. DUr.tber IJf ~ in the perlod, nth aaat....1 NiC-

[I Includes

r-....,.

-.va

ing if

tXJrC

than one

COUIQl

per10d

1Dvolved.

TREASURY DEPARTMENT
OR RELEASE A.M. NEWSPAPERS,
~sdaYI

January 4, 1965

January 51 1965.

RESULTS OF TREASURY'S WEEKLY BILL OFFERING

The Treasury Department announced last evening that the tenders for two series of
re&sury bills, one series to be an additional issue of the bills dated October 8, 1964,
nd the other series to be dated January 7, 1965, which were offered on December 29,
964, were opened at the Federal Reserve Banks on January 4. Tenders were invited for
1,100,000,000, or thereabouts, of 91-day bills and for $1,000,000,000, or thereabouts,
f 182-daY bills. The details of the two series are as follows:
ANGE OF ACCEPrED
OMPErITlVE BIDS:

High
Low
Average

91-day Treasury bi1l0
maturing April 8 1 1965
Approx. Equiv.
Price
Annual Rate
99.036
~.814'%
99.031
3.833c1p
99.032
3.829% Y

182-day Treasury bills
maturing July 8, 1965
Approx. Equiv.
Price
Annual Rate
98.020
3.916%
3.928c1p
98.014
98.015
3.927c1p

85 percent of the amount of 91-day bills bid for at the low price was accepted
92 percent of the amount of 182-day bills bid for at the low price was accepted
W'AL TENDERS APPLIED FOR AND ACCEPl'ED BY FEDERAL RESERVE DISTRlcrS:

District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
ICansas City
te.llas
San francisco
TOTA.L3

APl2lJ.ed For,
$ 36,350,000
1,321,625,000
28,422,000
24,983,000
17,078,000
31,265,000
296,243,000
42,027,000
17,856,000
35,347,000
26,799,000
108,571,000
$1,986,566,000

Accel'ted.
_
$25,980,000
705,325,000
16,344,000
24,558,000
16,435,000
21,150,000
125,148,000
34,639,000
12,047,000
29,719,000
16,619,000
73,746,000
$1,101,710,000 ~

Applied F:)r

22,4~7,000

1,548,884,000
11,898,000
32,187,000
11,525,000
27,574-,000
221,864,000
l3,790,000
.14,050,000
16,01'±,000
12,O8~,OOO

87,85S,OOO
$2,020,224,000

~ccel2ted

13,497,000
823,547,000
3,793,000
7,654,000
8,265,000
9,516,000
56,565,000
9,357,000
9,454,000
10,1345,000
7,010,000
43,959,000
$1,003,262,000

Includes $239 ,SEA ,000 nOllcompeti ti ve tenders 'h~cE'pted at tl,c ~lV f8.ce p:i:'ice of 390032
InclUdes $86,551,000 ncncompetitive tendpr:- p .-<:"d a,-:;:.
';" '...f: .. }:-rice of g3.015
On a Coupon issue of the same length and fc..r ,,;1." same amUl~~.t ... ~>;c:Jted, the return on
these bills would provide yields of :5. 92c1p, for the 91-day bills, and 4 .06c1p, for the
182-day bills. Interest rates on bills are quoted in terms of bank discount with the
retmn related to the face amount of the bills payable at maturity rather than the
amount invested and their length in actual number of days related to a 360-day year.
In contrast, yields on certificates, notes, and bonds are computed in terms of interest on the amount invested, and relate the number of days remaining in an interest
~ayment period to the actual number of days in the period, with semiannual compoundlng if more than one coupon period. is involved.

lLSS

£I

- 3 -

and exchange tenders vill receive equal. treatment.

Cash adjustments will be made

for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale
or other disposition of the bills, does not have any exemption, as such, and loss
from the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code of 1954.

The bills are subject

to estate , inheritance, gift or other excise taxes, whether Federal or state, but
are exempt from all taxation now or hereafter imposed on the principal or interest
thereof by any State, or any of the possessions of the United states, or by any
local taxing authority.

For purposes of taxation the amount of discount at which

Treasury bills are originally sold by the United states is considered to be interest.

Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954

the amount of discount at which bills issued hereunder are sold is not considered
to accrue until such bills' are sold, redeemed or otherwise disposed of, and such
bills are excluded from consideration as capital assets.

Accordingly, the owner

of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such
bills,' whether on original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity during the taxable year for
which the return is made, as ordinary ga.in or loss.
Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and govern the conditions of their.issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 -

decimals, e. g., 99.925.

Frs.ctlons may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which Will

be supplied by Federal Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of customers
provided the

nal11~S

of the customers are set forth in such tenders.

Others than

banking institutions will not be pennitted to submit tenders except for their
own account.

Tenders will be received without deposit from incorporated banks

and trust companies and from responsible and recognized dealers in investment
securities.

Tenders from others must be accompanied by payment of 2 percent of

the face amount of Treasury bills applied for, unless the tenders are 8.Ccompan1ed
by an express gus.ra.nty of payment by an incorporated bank" or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the Treasury Department of the amount and price range of accepted bids.

'!'hose

submitting tenders will be advised of the acceptance or rejection thereof.

The

secretary of the Treasury expressly reserves the right to accept or reject any
or a.11 tenders, in whole or in part, and his action in any': such respect shs.ll be
for each issue
final. Subject to these reservations, noncompetitive tenders/for $200,000 or ~I

umaiIY

~
~~m

without stated price from

Xfffl'"

any

one

bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues.

Settlement for accepted ten-

ders in accordance with the bids must be made or completed at the Federa.! Reserve
Banks on

January 14, 1965

, in cash or other immediately available funds or

in a like face amount of Treasury bills maturing

January 14, 1965

---..,.~~~--

cash

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,

January 6, 1965
TREASURY'S WEEKLY BILL OFFERING

The Treasury Department, by this public notice, invites tenders for two seriE
of Treasury bills to the aggregate amount of $ 2,100,000,000 , or thereabouts,

#.J.

cash and in exchange for Treasury bills matl,lring

January 14, 1965 , in the amoUl

of $ 2,114,060,000 , as follows:

f4"

91-day bills (to maturity date) to be issued

-f5f~--

in the amount of $ 1. 100

m.ooo ,

amount of

April m1965 .

$1,00~,000

January 14, 1965

W-

or thereabouts, represent-

ing an additional amount of bills dated
and to mature

fOl

October 15, 1964

,originally issued .in the

, the additional and original bills

to be freely interchangeable.

,tiff- -day bills, for,$l,ooO!St0 00
Janu~,

, or thereabouts, to be dated

1965 , and to mature

July ~965

The bills of both series will be issued on a discount basis under competitiVE
and noncompetitive bidding as hereinafter provided, and at maturity their face
amount. will be payable without interest.

They will be issued in bearer form only

and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour,

on~-thirty

p.m., Eastern Standard time, Monday, JanuftStl l , 1965

Tenders will not be received at the Treasury Department, Washington.

Each tender

must be for an even multiple of $1,000, and in the case of competitive tenders tm
price offered must be expressed on the basis of 100, with not more than three

TREASURY DEPARTMENT

January 6, 1965
FOR IMMEDIATE RELEASE

TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$2,100,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing January 14,1965, in the amount of
$ 2,114,060,000, as follows:
91-day bills (to maturity date) to be issued
in the amount of $ 1,100,000,000, or thereabouts,
additional amount of bills dated October 15,1964,
mature April 15,1965,
originally issued in the
$1}004,483,000, the additional and original bills
interchangeable.

January 14, 1965,
representing an
and to
amount of
to be freely

182-day bills, for $1,000,000,000, or thereabouts, to be dated
January 14,1965,
and to mature July 15,1965.
The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided, and at
maturity their face amount will be payable without interest. They
will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000
(maturi ty value).
Tenders will be received at Federal Reserve Banks and Branches
to the clOSing hour, one-thirty p.m., Eastern Standard
time, Monday, January 11, 1965.
Tenders will not be
received at the Treasury De~artment, Washington. Each tender must
be for an even multiple of $1,000, and in the case of competitive
tenders the price offered must be expressed on the basis of 100,
with not more than three decimals, e. g., 99.925. Fractions may not
be used. It is urged that tenders be made on the printed forms and
forwarded in the special envelopes which will be supplied by Federal
Reserve Banks or Branches on application therefor.
up

Banking institutions generally may submit tenders for account of
customers provided the names of the customers are set forth in such
tenders. Others than banking institutions will not be permitted to
submit tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
~sponsible and recognized dealers in investment securities.
Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
D-1456

- 2 -

The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject t.o
estate, inheritance, gift or other excise taxes, whether Federal or
State, but are exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authori';Y.
For purposes of taxation the amount of discount at which Treasu~r
bills are originally sold by the United States is considered to lie
interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills are
sold, redeemed or otherwise disposed of, and such bills are excll Lded
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this
notice prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained from
any Federal Reserve Bank or Branch.
000

- 3 -

t.he f;a lc or other dispord.tion of 'l'l'easury bills does not have any special treatment
such, uncl.er the Internal Revenue Code of 1954.

The bills are subject to estate, inhe:

l.tuncc, cift or other excise taxes, whether Federal or State, but are exempt from all
to...'w.t.lon nm., or hereafter imposed on the principal or interest thereof by any State,
any of the possessions of the United States, or by any local taxing authority.
PUl'POGCS

For

of taxation the omount of d:i. scount at which Treasury bills are originally so

by the Unitcd States is considered to be interest.

Under Sections 454 (b) and 1221 (!

of the Internal Revenue Code of 1954 the amount of discount at which bills issued herl
under are sold :l.s not considered to accrue until such bills are sold, redeemed or oth
wise disposed of, and such bills are excluded from consideration as capital assets.
Accordingly, the ouner of Treasury bills (other than life insurance companies) issued
hereunder need include in his income tax return only the difference between the price
paid for such bills, whether on original issue or on subsequent pruchase, and the arna
actually received either upon sale or redemption at maturity during the taxable year
for which the return is nmde, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, preseri
the terms of the Treasury bills and govern the conditions of their issue.
the circular may be obtained from any Federal Reserve Bank or Branch.

COlies of

- 2 -

BanJdne institutions generally may submi.t tenders for account of customers pro-

4ed the names of the customers are set forth in such tenders.

Others than bonking

stitutions Will 'not be permitted to submit tenders except for their own B.CCOunt.
Mers will be received 'vi thout depooit. from incorporated banks and trust companies
• from responsible and recognized dealers in investment securities.

Tenders from

mers must be accompan:lcd by payment of 2 percent of the face aniount of Treasury bills
.lied for I unless the tenders are accompanied by an express guaranty of payment by an
korporated bank or trust company.

All bidders are required to agree not to purchase or to sell, or to make any
this additional
)'eements with respect to the purchase or sale or other disposition of any bills of /
at a specific rate or price
.
a iSSUe/, until after one-thirty p.m., Eastern Standard time, Tuesday, January 12, 1995.

fH+

Immediately after the closing hour, tenders will be opened at the Federal Reserve
Its and Branches, following which public announcement will be made by the Treasury
llartment of the amount and price range of accepted bids.
11 be advised of the acceptance or rejection theraof.
~ressly

Those submitting tenders

The Secretary of the Treasury

reserves the right to accept or reject any or all tenders, in whole or in part,

d his action in any such respect shall be final.
~etitive

tenders for $ 300 ,000

iun

Subject to these reservations, non-

or less without stated price from anyone

dder lr.i.ll be accepted in full at the average price (in three decimals) of accepted
ilrpetitive bide.

Payment of accepted tenders at the prj.ces offered must be made or

Drplet~ at the Federal Reserve Bank in cash or other immediately available funds on

. , 119~65

, prOVided, hovrever, any qualified depositary will be permitted
not more than 50 percent of the amount of
make payment by credit in its Treo,sury tax and loan account for/Treasury bills allotted

it for itself and its customers up to :my amount for lfhich it shall be qualified in
~ess

of existing deposits when so notified by the Federal Reserve Banl~ of its District.

~e income derived from Treasury bills, vmether interest or gain from the sale

other disposition of the bills, does not have any exemption, as such, and loss from

TREASURY DEP.ARTMENr

Washington

FOR IMMEDIATE RELEASE,

January 6, 1965

TREASURY OFFERS ADDITIONAL $1-3/4 BILLION IN JUNE TAX BILIS
The Treasury Department, by this public notice, invites tenders for $l,750,~,
I

"8"

or thereabouts, of \154-day Treasury bills (to maturity date), to be issued January ]
'-

1965, on a d1 scount basi sunder competi ti ve and noncompeti ti ve bidding as hereinaftel
provided.

The bills of this series will be designated Tax Anticipation Series and

represent an additional amount of bills dated November 24, 1964, to mature June 22,
1965, originally issued in the amount of $1,504,489,000.
bills will be freely interchangeable.
payment of income

taxes due on

The additional and originaJ

They will be accepted at face value in,
June 15, 1965

W-

, and to the extent

are not presented for this purpose the face amount of these bills will be payable wit
out interest at maturity.
1965

,income

Ta.xpaycrs desirlne to apply these bills in payment of June.,,,
~::

~r1tX

tuxes havc the privileGe of surrendering them to any

FedcrD.l Rcserve Benl( or Brench or to the Oi'fice of the Treasux'cr of the United states
lTa shi net on , not more then fi:r-teen days before

June 15, 1965

, and receiving receipt

-f&}:
therefor shm-Tine; the face aI'lOunt of the bills so surrendered.
::mbl:u.tted in lieu of the bills on or bciore

June 15, 1965

=t4f

These receipts may be
, to the District Direc

01 Internal Revenue for the District in l1hich such taxes are payable.

The bills lfill

iGsued in bearer form only, end in denorninations of $1,000, $5,000, $10,000, $50,000,
QIOO,OOO, :;;SOO,OOO and $1,000,000 (maturity value).
Tenders 1-rill be rcceived at Fec.leral Reserve Banlw and Branches up to the closing
hour, one-thirty p.m., Eastern Standard time, Tuesday, January 12, 1965

·fMf

not be received at the Treasury Department, Hashington.

•

Tenders w

Each tender must be for-an e

multiplc of :~1,000, and in the case of competitivc tenders thc price offered rust be
c;:prezGcd on the basis of 100, llith not more than three deCimals, e. g., 99.925.
li'ro.ctions TIley not be used.

I~ is urged that tenders be made on the printed forms and

lonmrded in the special envelopes lmich 1-lill be supplied by Federal Reserve Banks or
nl'anches on application therefor.

TREASURY DEPARTMENT

=
January 6, 1965
~R

IMMEDIATE RELEASE
TREASURY OFFERS ADDITIONAL $1-3/4
BILLION IN JUNE TAX BILLS

The Treasury Department, by this public notice, invites tenders for
or thereabouts, of l5S-day Treasury bills (to maturity
date), to be issued January 18, 1965, on a discount basis under
competitive and noncompetitive bidding as hereinafter provided. The
bills of this series will be designated Tax Anticipation Series and
represent an additional amount of bills dated November 24, 1964, to
mature June 22, 1965, originally issued in the amount of $1,504,489,000.
~he additional and original bills will be freely interchangeable.
They will be accepted at face value in payment of income taxes due on
June 15, 1965, and to the extent they are not presented for this
purpose the face amount of these bills will be payable without interest
~t maturity.
Taxpayers desiring to apply these bills in payment of
June 15, 1965, income taxes have the privilege of surrendering them to
any Federal Reserve Bank or Branch or to the Office of the Treasurer of
the Unitea States, Washington, not more than fifteen days before
June 15, 1965, and receiving receipts therefor showing the face amount
of the bills so surrendered. These receipts may be submitted in lieu
Df the bills on or before June 15, 1965, to the District Director of
lnternal Revenue for the Dis tric t in which such taxes are payable. The
lills will be issued in bearer form only, and in denominations of $1,000,
15,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity
ralue) .
~1,750,OOO,000,

Tenders will be received at Federal Reserve Banks and Branches up
to the closing hour, one-thirty p.m., Eastern Standard time, Tuesday,
January 12, 1965. Tenders will not be received at the Treasury
Department, Washington. Each tender mus t be for an even multiple of
$1,000, and in the case of competitive tenders the price offered must
expressed on the bas is of 100, wi th not more than three dec ima Is, e. g. ,
99.925. Fractions may not be used. It is urged that tenders be made
'Ii the printed forms and forwarded in the special envelopes which will
le supplied by Federal Reserve Banks or Branches on application
:herefor.

Banking institutions generally may submit tenders for account of
~Ustomers provided the names of the customers are set forth in such
tenders. Others than banking institutions will not be permitted to
lubmit tenders except for their own account. Tenders will be received

0-1457

- 2 without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are accompanie
by an express guarantv of pavment by an incorporated bank or trust
companv.
All bidders arc required to agree not to purchase or to sell, or t
make any agreements with respect to the purchase or sale or other
disposition of anv hills of this additional issue at a specific rate or
price, until after lme-thirty p.m., Eastern Standard time, Tuesday,
January 12, 1965.
Immediately alter the clusing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement
will be made by the Treasury Department of the amount and price range n
accepted bids. Those suhmitting tenders will be advised of the
acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders, in
whole or in part, and his action in any such respect shall be final.
Subject to these reservations, noncompetitive tenders for $300,000 or
less without stated price [rom anyone bidder will be accepted in full
at the average price (in three decimals) of accepted competitive bids.
Payment o[ accepted tenders at the prices offered must he made or
completed at the Federal Reserve Bank in cash or other immediately
available funds on January 18, 1965, provided, however, any qualified
depositary will be permitted to make payment by credit in its TrEasury
tax and loan acc oun t for no t more than 50 perc en t 0 f the amoun t (If
Treasury bills allotted to it for itself and its customers up to any
amount [or which it shall he qualified in excess of existing dep(lsits
when so notified by the Federal Reserve Bank of its District.
The income derived from Treasury bills, whether interest or gain
from the sale or other disposition of the bills, does not have ary
exemption, as such, and loss from the sale or other disposition (f
Treasury bills does not have any special treatment, as such, under the
Internal Revenue Code o[ 1954. The bills are subject to estate,
inheritance, gift or other excise taxes, whether Federal or State, but
are exempt from all taxation now or hereafter imposed on the principal
or interest thereof bv any State, or any of the possessions of the
United States, or by any local taxing authority. For purposes of
taxation the amount of discount at which Treasury bills are originally
sold by the United States is considered to be interest. Under Sections
454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amount of
discount at which hills issued hereunder are sold is not considered to
accrue until such bills are sold, redeemed or othenoJise disposed of, ant
such bills are excluded from consideration as capital assets.

- 3 Accordingly, the owner of Treasury bi lIs (other than life insurance
companies) issued hereunder need include in his income tax return
only the difference between the price paid for such bills, whether on
original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity during the taxable
~ar for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

000

, .. :'.--"

I".

,~ .

;

C ,1
.C

.t.

; ,- .

~··X

,'" ('

i ''':

The Treasury acted to cover/its

cash needs

by announcing today that on Tuesday, January 12, it will
auction $1-3/4 billion of Tax Anticipation biDs due
June 22, 1965 and acceptable at par in payment of June 15
income tax liabilities.

Payment will be due

~~
~

January

~965.

Commercial banks may make payment for

up to 50 per cent of their own and their customers' subscriptions by credit to Treasury Tax and Loan Accounts.

TREASURY DEPARTMENT
:

January 6, 1965
FOR IMMEDIATE RELEASE
TREASURY OFFERING OF JUNE TAX
ANTICIPATION BILLS
The Treasury acted to cover the bulk of its
cash needs for the first quarter by announcing today
that on Tuesday, January 12, it will auction $1-3/4
billion of Tax Anticipation bills due June 22, 1965 and
acceptable at par in payment of June 15 income tax
liabilities.
1965.

Payment will be due Monday, January 18,

Commercial banks may make payment for up to

50 per cent of their own and their customers'
subscriptions by credit to Treasury Tax and Loan Accounts.

000

D-1458

- 2 -

"There is an obvious problem with regard to the 25 percent
gold reserve requirement
Action will be needed sooner of later
to correct the situation. Some change will be appropriate in
order both to assure the availability of credit in a growing
do~estic economy and to relieve any doubt that may remain anywher
that the U. So gold supply stands firmly behind the dollar in
international markets at the immutable price of $35. While
legislative action will undoubtedly have to be requested of the
Congr2ss, the form or timing of the request has not been finally
determined.
0

"Concerning the movement in the London gold price the need
for operational flexibility in market dealings should be
emphasized o Any speculation against the basic price of gold
would inevitably end on the losing sideo The market is under
firm control but has been allowed to fluctuate from time to time
as needed to make such speculation more costly."

000

TREASURY DEPARTMENT

January 8, 1965

FOR IMMEDIATE RELEASE:
The Treasury today issued the following statement:
"A wave of speculative comment has distorted the significance
of recent developments in the gold and foreign exchange markets.
The underlying factors influencing these markets have not changed
in recent days. Comparatively wide price fluctuations have been
set off, in these customarily small and narrow markets, by mistaken
interpretations of the coincidence of several unrelated official
actions or statements by various governments.
"The Treasury is able to give categorical assurance that neithe
the announced purchases of gold by the French Treasury, nor the
minor technical adjustment that has been executed in the market
quotations for the pound sterling, nor newspaper stories concerning
a possible revision in gold cover requirements in the United States,
reflect or imply any fundamental change in the basic supply and
demand situation that has prevailed in the gold and foreign exchange
markets in recent months.
"With regard to the French gold purchase announced yesterday, t
transaction adjusts the current French position. Future demand will
be primarily tied to whatever developments there may be in the Frenc
balance of payments over coming months o After this transaction,
French dollar holdings will total about $1.2 billion, of whichnear~
$700 million are held to cover the outstanding debt of the French
Government to the United States and Canada while an adequate working
balance would require about $400 million.
"With respect to market trading for currently available and
forward purchases of the British pound sterling, price changes have
reflected a technical adjustment to repeated but modest speculative
pressures that accumulate from time to time. Such pressures could
become disruptive if it were not for the fact that market quotations
can vary within a moderate range to increase the costs and risks of
unwarranted speculation of this nature.
D-1459

TREASURY DEPARTMENT

January 8, 1965
FOR IMMEDIATE RELEASE:

The Treasury today issued the following statement:

"A wave of speculative comment has distorted the significance
~ recent developments in the gold and foreign exchange markets.
The underlying factors influencing these markets have not changed
in recent days • Comparatively wide price fluctuations have been
set off, in these customarily small and narrow markets, by mistaken
interpretations of the coincidence of several unrelated official
lctions or statements by various governments.
"The Treasury is able to give categorical assurance that neither
:he announced purchases of gold by the French Treasury, nor the
linor technical adjustment that has been executed in the market
luotations for the pound sterling, nor newspaper stories concerning
possible revision in gold cover requirements in the United States,
eflect or imply any fundamental change in the basic supply and
smd situation that has prevailed in the gold and foreign exchange
arkets in recent months.
"With regard to the French gold purchase announced yesterday, this
rmsaction adjusts the current French position. Future demand will
eprimarily tied to whatever developments there may be in the French
alance of payments over corning months
After this transaction,
rench dollar holdings will total about $1.2 billion, of which nearly
100 million are held to cover the outstanding debt of the French
)Vernment to the United States and Canada while an adequate working
llance would require about $400 million.
0

"With respect to market trading for currently available and
.~orward purchases of the British pound sterling, price changes have

'eflected a technical adjustment to repeated but modest speculative
'ressures that accumulate from time to time. Such pressures could
'ecome disruptive if it were not for the fact that market quotations
an vary within a moderate range to increase the costs and risks of
nwarranted speculation of this nature.

H459

- 2 "There is an obvious problem with regard to the 25 percent
gold reserve requirement. Action will be needed sooner of later
to correct the situation. Some change will be appropriate in
order both to assure the availability of credit in a growing
do~estic economy and to relieve any doubt that may remain anywhere
that the U. S. gold supply stands firmly behind the dollar in
international markets at the immutable price of $35. While
legislative action will undoubtedly have to be requested of the
Congress, the form or timing of the request has not been finally
detennined.
"Concerning the movement in the London gold price the need
for operational flexibility in market dealings should be
e~hasized.
Any speculation against the basic price of gold
would inevitably end on the losing side. The market is under
firm control but has been allowed to fluctuate from time to time
as needed to make such speculation more costly."
000

-4~>l1:-.

JO~H1S ~.,as

ap~o:.Lntl.:d

to the .3ervice in 1954.

ll1 tlle B lrmir'd,11aIl, , Cillca6..), and

Pres iden:: ia 1 and

~lhi

4'-\

lan ta

te. clous e De ta ils •

O.L --.:

He nas served

.Lce, and on the Vice

In November, 1963, he was

as S ~bIl2d to [1.1e ;Tni te rt0USe whe l:"e he now 1.10l0S trie pos:i.. tion

cl.ssistant

~~ecial >'-bent

Birminoham,

.~.labama,

Ctlaq:;e.

Borll on December 11, 1925, at

ne holds a Bacnelor

O.L

Science de(::,ree in Law

and Business .• dministrat~on .:.:rom Howard Co11e6e, Birmingham.

is n,arri:c'd co che ":,j.cme:- Nita Jean Park,cr.

000

They have one son.

-3~ervice

hr. BeL1n \oJas apvoinc2cl tu the

and

assi~ned

member

t~e

\fuite douse 0etail, where he has been a rankinb

si~ce ~eptember,

pointed

on Septembel." 5, 1939,

~pecial ~geDt

1949.

0n September 1,

in Char6e.

1~61,

he was ap-

Born on June 17, 1916, at Forest

fark, Illinois, ne holds a Bachelor

3cience degree in Police

!\dministration irom Hicni::;an State University.

He is married tv th

iormer Jean Brownell, and nas two dauiShters.

Hr. Bor ine; was appoin ted to the Serv:'ce in 1943.

mer,ts illclude

.:;oinin6

~{eS2arcn

t~1e

r;ew York and Pniladelphia

\~i1ite

iiouse vetail in 1944, he

Sec~.1.otl.

host recently ne was an

t1l2

Sa lan:ar.ca,

l\e~.oJ

0 .~"':ices.

~..,as

with

.~l.ssistant

Pas tass ign-

Prior to

th(~

Protective

Special Agent

Yurk, n2 is married to tne "_ormer Ruth Lehner.

- 2 ,- ,- ..
CL::Cl.Ce.

a . . . ce;: lic:::

In november, 1963,

in Char:;e of the

Sorn in
-':·2C(c~.<12C:

i'lr. Youn;tlocd

Institute

h"-- no1n
-.--j
J"ec
.., o

O~~

;1ehDan, and has

i~r.

thL"82

~acon,

Geor~ia,

a Bachelor

in 1949.

on January 13, 1924,

~rom

Jcience Degree

::1e

the Geor6 i a

is married to the former Peggy

Jaushters and one son.

i<.c?11ero1211 '.vas appointed to the Jervice on December 19, 1941.

f:e has served in ::i21d offices in ')etroit, Toledo, Cincinnati,

,lash in.::; ton

i-ie serv2d ini::ially on the ,/hite House

~U1'1

Detail

r::-or.~

Je has

occupie~

,;~.;)

19L!·2

1951) and returned to it in 1955 from Indianapoli

se~2ral

supervisory positions and most recently has

iJ2c:n an _.ssistant .::;ecial

._~ent

Cha:::-~e.

l'rior to joining the

tbe i'ichL:,an .Jtate Police from

J~l.-n

::..J

on "2rcr'1

t~1e

::OP;1>2:;:'

l'~,

J1..1n,::~

J.915, in

j-:'ake.

cie,'J

BaltLllol.-e,

l:ichi~an,

he is married

The L<.e1lerr:;ans have two daushters.

241
January 8, 1965
Secret Service Chief James J. Rowley today announced the appointment of Rufus \oJ. Youngblood as Special Agent in Charge of the
White House Detail, and Roy H. Kellerman as Deputy Special Agent in
Charge.

The appointments will become effective Monday, January 11.

Mr. Youngblood will succeed Gerald A. Behn, and Mr. Kellerman
will replace Floyd M. Boring.

Mr. Behn and Mr. Boring are being

assigned to the Secret Service Headquarters' staff as Inspectors.
Thomas L. Johns will occupy the position vacated by Mr. Kellerman.
Chief Rowley said the changes were in line with the Service's
policy of rotating key personnel in order to provide senior supervisors with the broadest possible experience, and are part of his
current plan to streamline and improve the Service.
Mr. Youngblood was appointed to the United States Secret Servic

in 1951.

He served in the Atlanta office and on the White House

Detail, and was assigned to the Vice Presidential Detail shortly

TREASURY DEPARTMENT

FOR IMMED IA TE RELEASE

January 8, 1965

ROWLEY ANNOlTNCES CHANGES IN
SECRET SERVICE WHITE HOUSE DETAIL
Secre t Serv ice Chie [ J ame s J.
appointment of Rufus W. Youngblood
the White House Detail, and Roy H.
Agen t in Charge.
The a ppo in tmen ts
January 11.

Ruw ley today announced the
as Special Agent in Charge of
Kellerman as Deputy Special
will bec orne e [fec t i ve Monday,

Mr. Youngblood will succeed Gerald A. Behn, and Mr. Kellerman
will replace Floyd M. Boring. Mr. Eehn and Mr. Boring are being
assigned to the Secret Service HeadCjuarters' staff as Inspectors.
Thomas L. Johns will occupy the position vacated by Mr. Kellerman.
Chief Rowley said the changes were in line with the Service's
policy of rota t i ng key pers onne 1 in order to provide sen ior
supervisors with the broadest possible experience, and are part of
his current plan to s treaml i ne and improve the Service.
Mr. Youngblood was appointed to the United States Secret
Service in 1951. He served in the Atlanta office and on the
White House Detail, and was assigned to the Vice Presidential
~tail shortly after Vice President Johnson took office.
In
November, 1963, Mr. Youngblood hecame an Assistant Special Agent in
Charge of the White House Detail.
Born in Macon, Georgia, on
January 13, 1924, Mr. Youngblood received a Bachelor of Science
~gree from the Georgia Institute of Technology in 1949.
He is
~rried to the former Peggy Hehman, and has three daughters and
one son.
Mr. Kellerman was appointed to the Service on December 19, 1941.
~ has served in field offices in Detroit, Toledo, Cincinnati,

Washington and Indianapolis. He served initially on the White House
~~il from 1942 to 1951, and returned to it in ]955 from
Indianapolis. He has occupied several supervisory positions and
most recently has been an Assistant Special Agent in Charge.
Prior
to jOining the Service he served with the Michigan State Police
from 1937 to 1941.
Born on March 14, 1915, in New Baltimore,
Michigan, he is married to the former June Drake. The Kellermans
have two daughters.

D-1460

- 2 Mr. Behn was appointed to the Service on September 5, 1939,
and assigned to the White House Detail, where he has been a ranking
member since September, 1949. On September 1, 1961, he was
appointed Special Agent in Charge.
Born on June 17, 1916, at
Forest Park, Illinois, he holds a Bachelor of Science degree in
Police Administration from Michigan State University. He is
married to the former Jean Brownell, and has two daughters.
Mr. Boring was appointed to the Service in 1943. Past assignmer
include the New York and Philadelphia offices.
Prior to joining the
White House Detail in 1944, he was with the Protective Research
Section. Most recently he was an Assistant Special Agent in
Charge of the White House Detail.
Born on June 25, 1915, in
Salamanca, New York, he is married to the former Ruth Lehner. They
have two daughters.
Mr. Johns was appointed to the Service in 1954. He has
served in the Birmingham, Chicago, and Atlanta office, and on
the Vice Presidential and White House Details.
In November, 1963,
he was assigned to the White House where he now holds the position
of an Assistant Special Agent in Charge.
Born on December 11, 1925,
at Birmin~ham, Alabama, he holds a Bachelor of Science degree in
Law and Business Administration from Howard College, Birmingham.
He is married to the former Nita Jean Parker. They have one son.

000

*
City

"A" Market Chainnen

St. Paul

Robert S. Macfarlane
President
Northern Pacific Railroad
Company
St. Paul, Minnesota

1965 U. S. INDUSTRIAL PAYROLL SAVINGS COMMITTEE
CITY

"A" MARKET CHAIRMEN

"A" MARKET MANAGERS

Omaha

A. F. Jacobson
President
Northwestern Bell Telephone
Company
100 South 19th Street
Omaha, Nebraska

Neville R. Phillips
Room 8408 Federal Building
215 - North 17th Street
Omaha 9 Nebraska 68102
Phone: 402-221-3755

Philadelph ia

Stuart T. Saunders
Chairman of the Board
The Pennsylvania Railroad
Company
6 Penn Center Plaza
Philadelphia, Pennsylvania

Darrell D. Bandy
Room 800 = U. S. Customhouse
2nd and Chestnut Streets
Phi1adelphia~ Pennsylvania I'
Phone: 215-597~2450

Pittsburgh

F. L. Byrom
President
Koppers Company, Inc.
Koppers Building
Pittsburgh, Pennsylvania

James W. Marvin
Room 800 - U. S. Customhouse
2nd and Chestnut Streets
Philadelphia Pennsylvania 1
Phone: 215=597=2450

St. Louis

David S. Lewis
President
McDonnell Aircraft Corporation
P. O. Box 516
St. Louis. Missouri

Elmer C. Smith
Federal Reserve Bank Buildin
P. O. Box 442 - Main Post Of
St. Louis 9 Missouri 63166
Phone: 314=622~57l6

St. Paul

Robert S. Macfarlane
President
Northern Pacific Railway
Company
176 East 5th Street
St. Paul, Minnesota

Glen R. Johnson
408 Federal Building
110 South 4th Street
Minneapolis, Minnesota 55401
Phone~
612-334-2311

San Francisco

CarlO. Lindeman
President
The Pacific Telephone and
Telegraph Company
140 New Montgomery Street
San Francisco, California

Newton B. McCarthy
Room 7116 = Box 36002
450 Golden Gate Avenue
San Francisco, California 94
Phone: 415-556-3700

Seattle

Will iam M. Al1en
President
The Boeing Company
P.- O. Box 3707
Seattle, Washington

William C. H. Lewis
236 Federal Office Building
909 First Avenue
Seattle, Washington 98104
Phone: 206=682=4255

Harold S. Geneen, President
International Telephone and
Telegraph Corporation
320 Park Avenue
New York, New York

Frank R. Milliken, President
Kennecott Copper Corporatior
161 East 42nd Street
New York~ New York

MEMBERS-AT-LARGE

(Note:
(Note:

Insert "U. S. Savings Bonds Division" in address for Ma~ket Managers)
All telephone numbers are under the FTS System)

') t:1 c

1965 U. S. INDUSTRIAL PAYROLL SAVINGS COMMITTEE
"A" MARKET CHAIRMEN

"A Ii MARKET MANAGERS

Los Angeles

Daniel J. Haughton
President
Lockheed Aircraft Corporation
2555 Hollywood Way
Burbank, California

William C. Eller
1204 Western Pacific Buildinl
1031 South Broadway
Los Angeles, Cal ifornia 900l~
Phone: 213-688-4840

Louisville

William H. Kendall
President
Louisville and Nashville
Railroad Company
908 West Broadway
Louisville, Kentucky

John U. Courtney
706 Republic Building
429 West Walnut Street
Louisville, Kentucky 40202
Phone: 502-582-5441

Milwaukee

Robert S. Stevenson
President
Allis-Chalmers Manufacturing
Company
1126 South 70th Street
Milwaukee, Wisconsin

Edwin L. Bersagel
Room 307 - Empire Building
710 North Plankinton Avenue
Milwaukee, Wisconsin 53203
Phone~
414-272=3741

Nashville

Colonel Gilbert M. Dorland
President
Nashville Bridge Company
P. O. Box 239
Nashville, Tennessee

Norvell S. Rose
Room 638 U. S. Court House
801 Broad Street
Nashville, Tennessee 37203
Phone 615-242-5401

Newark

Orville E. Beal
President
The Prudential Insurance
Company of America
745 Broad Street
Newark, New Jersey

Jack B. Dunn
Room 413 Federal Building
Federal Square
Newark, New Jersey 07102
Phone: 201-645-2263

New Orleans

Henry Z. Carter
President
Avondale Shipyards, Inc.
P. O. Box 1030
New Orleans, Louisiana

Raphael He Morvant
Room T~5003A, Federal Office
Building ~ 701 Loyola Avenue
New Orleans, Louisiana 70113
Phone~
504-527-6124

New York

James F. Oates, Jr.
Chairman of the Board
The Equitable Life Assurance
Society of the United States
1285 Avenue of the Americas
New York, New York

W. Howard Smith
346 Broadway
New York, New York 10013
Phone: 212-732-7460

Oklahoma City

Robert S. Kerr, Jr.
Director
Kerr-McGee Oil Industries, Inc.
Kermac Build ing
Oklahoma City, Oklahoma

Samuel D. Braden
Room 5413 - New Federal Buile
Oklahoma City, Oklahoma 7310~
Phone: 405-236-2558

1965
U. S. INDUSTRIAL PAYROLL SAVINGS COMMITTEE
MARKET CHAIRMEN AND MARKET MANAGERS
HONORARY CHAIRMAN

CHAIRMAN

Honorable Douglas Dillon
Secretary of the Treasury
Washington, D. C.

Dr. Elmer W. Engstrom, Presie
Radio Corporation of Ainerica
30 Rockefeller Plaza
New York, New York

NATIONAL INDUSTRY CAMPAIGN MANAGER
Martin H. Miller
National Industry Campaign Manager
U. S. Treasury Department
U. S. Savings Bonds Division
Washington, D. C. 20226
Phone: Executive 3-6400
Ext. 2219
CITY

"A" MARKET CHAIRMEN

"A" MARKET MANAGERS

Baltimore

Alfred P. Ramsey
President
Baltimore Gas and Electric
Company
Lexington and Liberty Streets
Baltimore, Maryland

Ormond R. Galvin
319 Calvert Building
St. Paul & Fayette Streets
Baltimore, Maryland 21202
Phone: 301-752-2712

Birmingham

Robert E. Garrett
President
United States Pipe and
Foundry Company
3300 First Avenue, North
Birmingham, Alabama

Oscar P. Drake
Room 100
The 2121 Building
2121 Eighth Avenue North
Birmingham, Alabama 35203

Boston

O. Kelley Anderson
President
New England Mutual Life
Insurance Company
501 Boylston Street
Boston, Massachusetts

Francis E. Burke
Room 1901 U. S. Post Office
& Courthouse Building
Boston, Ma5sachusetts 02109
Phone~
617-223-2921

Chicago

William J. Quinn
President
Chicago, Milwaukee, St. Paul
and Pacific Railroad Company
516 West Jackson Boulevard
Chicago, Illinois

Arnold J. Rauen
Room 1
536 South Clark Street
Chicago, Illinois 60605
Phone: 312-828-6753

Phone~

205~325-3784

4
2.

1965 U. S. INDUSTRIAL PAYROLL SAVINGS COMMITTEE
CITY

"A" MARKET CHAIRMEN

"A" MARKE'I' MANAGERS

Cleveland

Wade N. Harris
President
Midland-Ross Corporation
55 Public Square
Cleveland, Ohio

Charles L. Martin
4th Floor, Federal Reserve
Bank Building
East Sixth & Superior Streetl
Cleveland. Ohio 41101
Phone: 2l6~24l-7135

Dallas

Fladger F. Tannery
President
Frito-Lay, Inc.
400 Exchange Bank Building
Dallas, Texas

Jesse L. Adams, Jr.
Room 502 ,. Thomas Building
1314 Wood Street
Dallas, Texas 75202
Phone: 214-749-2631

Denver

Walter K. Koch
President
The Mountain States Telephone
and Telegraph Company
P. O. Box 960
Denver, Colorado

Dewey M. Smith
Room 426 - Denham Building
635 18th Street
Denver, Colorado 80202
Phone: 303~297-3577

Detroit

Lynn A. Townsend
President
Chrysler Corporation
341 Massachusetts Avenue
Detroit, Michigan

Delmar V. Cote l
1400 Washington Boulevard Bui
Detroit 9 Michigan 48226
Phone: 313- 226-7375

Greensboro

Howard Holderness
President
Jefferson Standard Life
Insurance Company
North Elm Street
Greensboro, North Carolina

Walter P. Johnson
238 Post Office Building
North Eugene Street
Greensboro, North Carolina 21
Phone: 919-275-9459

Hartford

William P. Gwinn
President
United Aircraft Corporation
400 Main Street
East Hartford, Connecticut

Kenneth M. Crane
305 Steiger Building
99 Pratt Street
Hartford, Connecticut 06103
Phone: 203-244-3550

Houston

Sidney A. Shuman
President
Reed Roller Bit Company
6501 Navigation Boulevard
Houston, Texas

Harry J. Dedeaux
Room 2513 = New Federal Build
414 Rust Avenue
P. O. Box 61211
Houston, Texas 77061
Phone: 713-228-4245

Indianapolis

Eugene N. Beesley
President
Eli Lilly & Company
740 South Alabama Street
Indianapolis, Indiana

Benner E. Davenport
36 South Pennsylvania Street
Indianapolis, Indiana 46204
Phone: 317-633~87l9

1964 U

nn:rc,; I'RlA.t

PAYROLL SAVINGS COMMI::'TEE

Crawfo::d P-. :;rSen~"7alt
Chai~an of the Soard
E, I. au Pont de NcffiOU::S & Co.,
du PO:lt SuUd:'ng,

Wi. lmi::1gt'Jn, De la'Mare
(G:1.emf:.: a Is)
Jo:m L, ::;t.:s:'iman
p:,€£ dent
A.,chor nockir.g Glass Corporation

109 North 3Toad Street
Lan::as ':ezo. O:"l.i 0
(GJ..ass)

Wi:;' 1. :::.a<n .7
~
I~c.

Qu inn
Ml'd President
0

C':'!ic.ag;) t M:'l.~aukee, St. Paul
anij Pad He Railroad
848 U~1i.'.)t~. Station Bailding
C~i:::;l60! Illinois
(Ra:"l::oads)

M. J. Rathbo:1.e
G;1a~,-man

of the Soard

Company of New Jersey
30 Rockafel1er Plaza
Ne-N Y()~k, ~,e'[;/' York
Sta.nda::'d

(Poe tr'0 leuIT!)

Reed O. Runt
Chai.o=man of the Board
Crown Ze!lertach Corporation
One :'3c51:1. St::eet
Sa~ Francisco, California
(Pap~r)

Ho I, Roml":.es
Vice 1~!H~.irman of the Board
Ame'riean Telep::lone and Telegraph Co.
195 :Broadway
Ne,,,, York, R~,M' York
(Elect~ical

Thomas V. JO':1es
President ,and C".iairman
Northrop Corporation
9744 WilFhlr~ Boulevard
Beverly Hills, C£liiornia
(Aero9pa~e-Aircraft)

Clarence A.
Presicie::>.t

Equipment)

Co rde.:; Snyder, Jr.
Chairman of the Board
31.:t\.~Kn()x CO;-:lpany

30,;';" S ~xth Avenue
Pittsaurgh, Pennsylvania
(Xa(b.:;"n'<;!'~,r Manu fecturing)

K~lley

Co E. W')olma.n

Dixi.e OhLo Express. Incu

P:::s ide!" t

P. Do Box 750

Delta Air Lines, Inc o

Akron) 01:110

At! a'Cl.t~ Airport
t.tl ~·.1.tat Georgia
(Ai:: rra~spoztation)

(Tr';lcking)
La~.Yrer~·~e l:itc~:fieId,

Jr&

Cha:'rman of tl-:e :g,oard
Ahlmi.:lUJ!'I CClr::pany of America
15~1

Alc0a Suilding
Pe", :izyl"lf ani-a

Pittsb'H~h

(AlumimliTI)

Josep!1 Ao Martir..o
Chair;-:-(Bn end rr~side::!t
Natio1".al Lead Company
111 :Broadway

New York, New
(Lead)

Charles F.

Yor~

Myc~5,

J~o

Pre3i0e~lt
Burlingto~ Industries, Inc.
301 ~orth E~gene St~e€c
G=een3b0Ta, Nor~h Carolina

(7exti.le:;)

r~~li~
]'1''=.':;

&. Worthington

tel er: ~

Stetes Steel Corporation
YZS HilHam Penn Place
F ~ :. :: 3 b'.a gn. ~ Pennsy 1van ia
{St'2<S 1)

U~~[0rl

C~erl~s

Jo Zimmerman

President
Connecticut Mutual Life Insurance
:ompany
140 GaT3en Street
Har~f0rd, Connecticut
O:r~31;:: an ce)

U S
0

1964
INDUSTRIAL PAYROLL SAVINGS COHMITl'EE
FOR THE TREASURY DEPARTMENT
CHAIRMAN
FRANK R. MILLIKEN

PRESIDENT
KENNECOTT COPPER CORPORATION
161 EAST 42ND STREET

?4°

.r...

NEW YORK, NEW YORK

(COPPER)
Crowdus Baker
President
James T. Griffin
Vice President
Sears, Roebuck and Company
925 South Homan Avenue
Chicago, Illinois
(Retail Merchandising)
Walter Bouldin
President
Alabama Power Company
600 North 18th Street
Birmingham, Alabama
(Public Utilities)
Maurice R. Chambers
President
Internation.a1 Shoe Company
1509 Washington Avenue
St. Louis, Missouri
(Shoe Manufacturing)
Harold W. Comfort
President
The Borden Company
350 Madison Avenue
New York, New York
(Food Manufacturing)
John D. deButts
President
Illinois Bell Telephone Company
212 West Washington Street
Chicago, Illinois
(Telecommunications)
John D. Ehrgott
Chairman of the Board
The Great Atlantic & Pacific
Tea Company, Inc.
420 Lexington Avenue
New York, New York
(Retail Fooe!)

Dr. Elmer W. Engstrom
President
Radio Corporation of America
30 Rockefeller Plaza
New York, New York
(Electronics)
Ray R. Eppert
President
Burroughs Corporation
6071 Second Avenue
Detroit, Michigan
(Office Equipment)
Raymond C. Firestone
President
The Firestone Tire & Rubber Company
1200 Firestone Parkway
Akron, Ohio
(Rubber)
Alexander H. Galloway
President
R. J. Reynolds Tobacco Company
Winston~Salem, North Carolina
(Tobacco)
Harold S. Geneen, President
International Telephone and
Telegraph Corporation
320 Park Avenue
New York, New York
Member 1963
John F. Gordon
President
General Motors Corporation
General Motors Building
Detroit, Michigan
(Automotive)

- 3 -

Dr. Elmer W. Engstrom, President, Radio Corporation of
America, was named Chairman of the U. S. Industrial Payroll
Savings Committee for 1965 by Secretary Dillon on December
7, 1964.

Dr. Engstrom was a member of the 1964 Committee,

serving as Chairman, Mid-Atlantic Area, Electronics Industry
Drive, during the 1963 campaign, when Mr. Geneen was chairman
for both electronics and for the full industrial committee.
A list of the 1964 and 1965 Committees is attached.
000

- 2 -

Other Treasury speakers on the day's program include Under
Secretary of the Treasury-Designate for Monetary Affairs, Frederick L. Deming; Director of Treasury's Office of Debt Analysis,
Duane Saunders, and National Director of U. S. Savings Bonds,
William H. Neal.

The meeting will be opened by Deputy Under

Secretary for Monetary Affairs, Paul A. Vo1cker.
The U. S. Industrial Payroll Savings Committee was organized
by Secretary Dillon two years ago to stimulate employee thrift
through purchases of U. S. Savings Bonds via the Payroll Savings
Plan.

The efforts of the Committee, and those volunteers working

with governmental units, resulted in a total sign-up of more than
1.3 million new savers in 1964.

In companies of Committee members

alone, 213,000 new savers were enro11ed o

Campaigns were conducted

in more than 12,000 companies during 1964.
Members of the Committee for the new campaign year will head
up payroll savings programs in their respective metropolitan
communities.

Mr. Milliken, retiring Chairman, and Harold S.

Geneen, President, International Telephone and Telegraph
Corporation, Chairman of the 1963 Committee, will remain active
as members-at-1arge of the 1965 Committee.
( more )

TREASURY DEPARTMENT

January / I , 1965
FOR IMMEDIATE RELEASE
TREASURY INDUSTRIAL PAYROLL SAVINGS COMMITTEE MEETS
TO STIMULATE NATIONWIDE SAVINGS BONDS SALES FOR 1965
Nearly 50 of America's top industrial leaders will meet
with Treasury Secretary Douglas Dillon and other officials in
Washington, Tuesday, January 12, to review results of the 1964
Payroll Savings campaign for the sale of U. S. Savings Bonds
and to plan the 1965 drive.

Following the meeting they will

be received by the President at the White House.
The businessmen are members of the Uo S. Industrial Payroll
Savings Committee named by Secretary Dillon.

They represent

both major industries and top industrial market areas.
Frank R. Milliken, President, Kennecott Copper Corporation,
1964 Committee Chairman, will preside over sessions in the
Benjamin Franklin Suite at the Department of State.
Secretary Dillon is principal speaker at a noon luncheon
and will later accompany committee members to the White House,
where President Johnson will receive the group at 5:30 p.m.
( more )

TREASURY DEPARTMENT
(

FOR IMMEDIATE RELEASE

TREASURY INDUSTRIAL PAYROLL SAVINGS COMMITTEE MEETS
TO STIMULATE NATIONWIDE SAVINGS BONDS SALES FOR 1965
Nearly 50 of America's top industrial leaders will meet with
Treasury Secretary Douglas Dillon and other officials in Washington,
fuesday, January 12, to review results of the 1964 Payroll Savings
campaign for the sale of U. S. Savings Bonds and to plan the 1965
drive. Following the meeting they will be received by the
President at the White House.
The businessmen are members of the U. S. Industrial Payroll
Savings Committee named by Secretary Dillon. They represent both
'itajor industries and top industrial market areas.
Frank R. Milliken, President, Kennecott Copper Corporation,
1964 Committee Chairman, will preside over sessions in the
~~amin Franklin Suite at the Department of State.
Secretary Dillon is principal speaker at a noon luncheon and
will later accompany committee members to the White House, where
President Johnson will receive the group at 5:30 p.m.
Other Treasury speakers on the day's program include
,Under Secretary of the Treasury-Designate for Monetary Affairs,
'Frederick L. Deming; Director of Treasury's Office of Debt Analysis,
~ane Saunders, and National Director of U. S. Savings Bonds,
William H. Neal. The meeting will be opened by Deputy Under
~cretary for Monetary Affairs, Paul A. Vo1cker.
The U. S. Industrial Payroll Savings Committee was organized
by Secretary Dillon two years ago to stimulate employee thrift
through purchases of U. S. Savings Bonds via the Payroll Savings
Plan. The efforts of the Committee, and those volunteers working
with governmental units, ~esulted in a total sign-up of more than
1.3 million new savers in 1964. In companies of Committee members
~1one, 213,000 new savers were enrolled. Campaigns were conducted
lnmore than 12,000 companies during 1964.

D-1461

- 2 Members of the Committee for the new campaign year will head
up payroll savings programs in their respective metropolitan
communities. Mr. Milliken, retiring Chairman, and Harold S. Geneen,
President, International Telephone and Telegraph Corporation,
Chairman of the 1963 Committee, will remain active as members-atlarge of the 1965 Committee.
Dr. Elmer W. Engstrom, President, Radio Corporation of
America, was named Chairman of the U. S. Industrial Payroll Savings
Committee for 1965 by Secretary Dillon on December 7, 1964.
Dr. Engstrom was a member of the 1964 Committee, serving as
Chairman, Mid-Atlantic Area, Elec tronics Industry Drive, during the
1963 campaign, when Mr. Geneen was chairman for both electronics
and for the full industrial committee.

A list of the 1964 and 1965 Committees is attached.

u..

1964
S. INDUSTRIAL PAYRoLL SAVINGS CCtfMITTEE
FOR THE TREASURY DEPARTMENT

CHAIRMAN

FRANK R. MILLIKEN
PRESIDENT

KENNEC07T COPPER CORPORATION
161 EAST 42ND STREET
NEW YORK p NEW YORK

(COPPER)
Crowdus Baker
President
James T. Griffin
Vice President
Sears, Roebuck and Company
925 Sou th Homan Avenue
Chicago, Illinois
(Reta! 1 Merchandising)
Wal te!' Bo:.! Idin
Presicent
Alabarea Power Company
600 North 18th Street
Birmingham» Alabama
(Public Utilities)
Maurice R. Chambers
President
International Shoe Company
1509 Washington Avenue
St. Louis, Missouri
(Shoe Manufac~:uring)

Dro Elmer W. Engstrom
President
Radio Corporation of America
30 Rockefeller Plaza
New York, New York
(~lectronics)

Ray Ro Eppert
P~esident

Burroughs Corporation
6071 Second Avenue
Det~oit, Michigan
(Office Equipment)
Raymond C. Firestone
President
The Firestone Tire & Rubber Company
1200 Firestone Parkway
Akron, Ohio
(Rubber)
Alexander H. Galloway
Pr~sident

Reynolds Tobacco COIIlpany
Winston-Salem, North Carolina
(Tobacco)
Ro .10

Harold W Comfort
President
The B(,l'den Camp any
350 Madison Ave:lue
New York, New York
(Food Manufacturing)
0

John D. de:3utts
President

Illinois Be 11 Te1ephone Company
212 West Washington Street
Chicago, Illinois
(Tell"communications)
John D. Ehrgott
Chairman of the ~oard
The Great Atlantic & Pacific
Tea Company, Inc.
420 Lexington Avenue
New York, New York
(Retail Fooe!)

Harold So Geneen, Pre.ident
International Telephone and
Telegraph Corporation
320 Park Avenu~
New York, New York
Metr.ber 1963
John F. Gordon
Preeident
Ge~eral Motors Corporation
General Motors Building
Detroit, Michigan
(Automotive)

1964

S. INDUSTRIAL PAYROLL SAVINGS COMMITTEE

crawford H. Greenewalt
Chairman of the Board
E, I. du Pont de Nemours
du Pont Building
Wilmington, Uelawsre

Wi.llia'l\ J Quinn
,Cbeiritilltl 8ftd President
Chicago, Milwaukee, St. Paul
n

& Co.,

(Chemi.cals)

Inc.

and Pad fie Railroad
848 u~ton Station Building
Ghi.ca30, Illinois
(Ra:"lrogds)

John L. =;cshman
president
A.,c.ho:r Hocking Glass Corporation
109 North Sroad Street
Lan=a!l~eL) O!lio
(C13sz;)

M. J, Rat.hbone
C;lal.:tman of the Board
Stenda:-d Oil Company of New Jersey
30 Rockefeller Plaza
Ne°.., Yo:-k, New York
(Petroleum)

Reed O. Hunt
Cha:'1Cman of the Board
Crown Ze!lertach Corporation
One Bush St::-eet
Sa~

Francisco, California

(Pap~r)

H, 1, Rornr.e:.9

Vlce f'ha.irman of the Board
America.n l'~lep'l\one and Telegraph Co.
ISS !rC'adway
Ne'oJ York, New York

(Electrical Equipment)
Thomas V. Jo':\es
President ,and C:1airman
Northrop Co;:-p0:;:03ti.on

9744

Wil"htr~

Beverly

Rills.

Boulevard
C~lifornia

(Aero!"- pa<:(:'~Ai.1tcr aft)

Clarence A.

Wo Cordes Snyder, Jr.
Chai~man of the Board
31.g"~!C\,,X Ct)~:\'pany

~jO[~

S ~xth Avenue
Pennaylvania
(Mw:h:':"n"?r~f Manufacturing)

Pitts~~rgh,

K~11ey

Pt'e~d.de::'l t

C. E. Woolme.n

P. O. Box ISO

I'::-~s ider t
Delta Air Lines, Inc.

Akron, 01:\10
(Tr::;i,-:king)

Ad a"lt '1 AilC'po1rt
bt1gnta. Georgia

Dixie

Oh~o

Express. Inco

(A~r rra~sportation)
Lar.,7n>r~c~ U.td:Held, Jr.
Chairms:n of the Board
Alumi:luJ!I G:Jompany of Amel"ica
1')(;1 AlclJa "Buildi.ng
Pittsburgh, Periltsylvania
(Al urn i ll1.:111l. )

leslip &. Worthington
ider-: ';
U~it0d States Steel Corporation
:)~L~ \.]il1iam Peron Place
f'H. :sburgl:\, Pennsylvania
;?X'/":'3

{St~~l)

Joseph An Mattino
Chairman em.':! FrE's ide'::lt
National l.ead Compat'ly

111 Broedway
New York, New
(Lead)

York

Charles F. Myers, Jr.
Pr~sident

Burlington Industries, Inc.
301 North Eugene Street
Greensboro, North Caro 1 ina

(Textile:;)

Charles J. Zimmerman
Plt'esident
Connecticut Mutual Life Inlurance
Company
140 Garden Street
Hartford, Connecticut
(Insurance)

!ill

u. S. INDUSTRIAL PAYROLL SAVINGS COOtITTEE
MARKET CHAIRMEN AND MARKET MANAGERS
HONORARY CHAIRMAN

CHAIRMAN

Honorable Douglas Dillon
Secretary of the Treasury

Dr. Elmer W. Eng.tram. President
Radio Corporation of America
30 Rockefeller Plaza
New York. New York

washington, D. C.

NATIONAL INDYSTRY CAMPAIGN MANAGER
Martin H. Miller
National Industry Campaign Manager
U. S. Treasury Department
U. S. Savings Bonds Division
Washington, D. C. 20226
Phone: Executive 3-6400
Ext. 2219
"A" MARKET eRA IRMEN

A" MARKET MANAGERS

Baltimore

Alfred P. Ramsey
President
Baltimore Gas and Electric
Company
Lexington and Liberty Streets
Balttmore, Maryland

Ormond R. Galvin
319 Calvert Building
St. Paul & Fayette Street.
BaltUnore, Maryland 21202
Phone: 301-752-2712

Birmingham

Robert E. Garrett
President
United States Pipe and
Foundry Company
3300 First Avenue, North
Birmingham, Alabama

Oscar P. Drake
Room 100
The 2121 Building
2121 Eighth Avenue North
Birmingham, Alabama 35203
Phone: 205-325-3784

Boston

O. Kelley Anderson
President
New England Mutual Life
Insurance Company
501 Boylston Street
Boston, Massachusetts

Francis E. Burke
Room 1901 U. S. Post Office
& Courthouse Building
Boston, Ma~sachusetta 02109
Phone: 617-223-2921

Chicago

Will iam J. Qu inn
President
Chicago, Milwaukee, St. Paul
and Pacific Railroad Company
516 West Jackson Boulevard
Chicago, Illinois

Arnold J. Rauen
Room 1
536 South Clark Street
Chicago, Illinois 60605
Phone: 312-828-6753

1965 U. S. INDUSTRIAL PAYROLL SAVINGS C(J(MITTEE

CITY

"A" MARKET CHAIRMEN

"A" MAUEr MANAGERS

Cleveland

Wade N. Harris
President
Midland-Ross Corporation
55 Public Square
Cleveland, Ohio

Charle. L. Martin
4th Floor, rederal ae ••rve
Bank BuUdina
Ealt Sixth , Superior Street.
Cleveland, Ohio 41101
Phone: 216-241-7135

Dallas

Fladger F. Tannery
President
Frito-Lay, Inc.
400 Exchange Bank Building
Dallas, Texas

Jesse L. AdamI, Jr.
Room S02 - Thoma. Building
1314 Wood Street
Dalla., Texa. 75202
Phone: 214-749-2631

Denver

Walter K. Koch
President
The Mountain States Telephone
and Telegraph Company
P. O. Box 960
Denver, Colorado

Dewey M. Smith
Room 426 - Denham Building
635 18th Street
Denver, Colorado 80202
Phone: 303-297-3577

Detroit

Lynn A. Townsend
President
Chrysler Corporation
341 Massachusetts Avenue
Detroit, Michigan

Delmar V. Cote'
1400 Washington Boulevard Building
Detroit, Michigan 48226
Phone: 313-226-7375

Greensboro

Howard Holderness
President
Jefferson Standard Life
Insurance Company
North Elm Street
Greensboro, North Carolina

Walter P. Johnson
238 Post Office Buildina
North Eugene Street
Greensboro, North Carolina 27401
Phone: 919-275-9459

Hartford

William P. Gwinn
President
United Aircraft Corporation
400 Maln Street
East Hartford, Connecticut

Kenneth M. Crane
30S Steiger Building
99 Pratt Street
Hartford, Conneeticut 06103
Phone: 203-244-3550

Houston

Sidney A. Shuman
President
Reed Roller Bit Company
6501 Navigation Boulevard
Houston, Texas

Harry J. Dedeaux
Room 2513 - Mew Federal Building
414 RUlt Avenue
P. O. Box 61211
HOUlton, Texa. 77061
Phone: 713-228-4245

Indianapolis

Eugene N. Beesley
President
Eli Lilly & Company
740 South Alabama Street
Indianapolis, Indiana

Benner E. Davenport
36 South Pennsylvania Street
Indianapolil, Indiana 46204
Phone: 317-633-8719

1965 U. S. INDUSTRIAL PAYROLL SAVINGS CCHtITTEE

£ITY

"A" MARKET CHAIRMEN

"A" MARKET MANAGERS

Los Angeles

Daniel J. Haughton
President
Lockheed Aircraft Corporation
2555 Hollywood Way
Burbank, California

William C. Eller
1204 Western PacifiC Building
1031 South Broadway
Los Angeles, California 90015
Phone: 213-688-4840

Louisville

William H. Kendall
President
Louisville and Nashville
Railroad Company
908 West Broadway
Louisville, Kentucky

John U. Courtney
706 Republic Building
429 West Walnut Street
Louisville, Kentucky 40202
Phone: 502-582-5441

Milwaukee

Robert S. Stevenson
President
Allis-Chalmers Manufacturing
Company
1126 South 70th Street
Milwaukee, Wisconsin

Edwin L. Bersagel
Room 307 - Empire Building
710 North Plankinton Avenue
Milwaukee, Wisconsin 53203
Phone: 414-272-3741

Nashville

Colonel Gilbert M. Dorland
President
Nashville Bridge Company
P. O. Box 239
Nashville, Tennessee

Norvell S. Rose
Room 638 U. S. Court House
801 Broad Street
Nashville, Tennessee 37203
Phone 615-242-5401

Newark

Orville E. Beal
President
The Prudential Insurance
Company of America
745 Broad Street
Newark, New Jersey

Jack B. Dunn
Room 413 Federal Building
Federal Square
Newark, New Jersey 07102
Phone: 201-645-2263

New Orleans

Henry Z. Carter
President
Avondale Shipyards, Inc.
P. O. Box 1030
New Orleans, Louisiana

Raphael Ho Morvant
Room T-5003A, Federal Office
Building - 701 Loyola Avenue
New Orleans, Louisiana 70113
Phone: 504-527-6124

New York

James F. Oates, Jr.
Chairman of the Board
The Equitable Life Assurance
Society of the United States
1285 Avenue of the Americas
New York, New York

W. Howard Smith

Robert S. Kerr, Jr.
Director
Kerr-McGee Oil Industries, Inc.
Kermac Building
Oklahoma City, Oklahoma

Samuel D. Braden
Room 5413 - New Federal Building
Oklahoma City, Oklahoma 73102
Phone: 405-236-2558

Oklahoma City

346 Broadway
New York, New York 10013
Phone: 212-732-7460

1965 U. S. INDUSTRIAL PAYROLL SAVINGS COOtITTEE

-CITY

"A" MARKET CHAIRMEN

"A" HARlET MANAGERS

Omaha

A. F. Jacobson
President
Northwestern Bell Telephone
Company
100 South 19th Street
Omaha, Nebraska

Neville R. Phillips
Room 8408 Federal Building
215 - North 17th Street
Omaha, Nebraska 68102
Phone: 402-221-3755

Philadelphia

Stuart T. Saunders
Chairman of the Board
The Pennsylvania Railroad
Company
6 Penn Center Plaza
Philadelphia, Pennsylvania

Darrell D. Bandy
Room 800 - U. S. Customhouse
2nd and Chestnut Streets
Philadelphia, Pennsylvania 19106
Phone: 215-597-2450

Pittsburgh

F. L. Byrom
President
Koppers Company, Inc.
Koppers Building
Pittsburgh, Pennsylvania

James W. Karvin
Room 800 - U. S. Customhouse
2nd and Chestnut Streets
Philadelphia, Pennsylvania 19106
Phone: 2l5-597~2450

St. Louis

David S. Lewis
President
McDonnell Aircraft Corporation
P. O. Box 516
St. Louis, Missouri

Elmer C. Smith
Federal Reserve Bank Building
P. O. Box 442 - Main Post Office
St. LOUis, Missouri 63166
Phone: 314-622-5716

St. Paul

Robert S. Macfarlane
President
Northern Pacific Railway
Company
176 East 5th Street
St. Paul, Minnesota

Glen R. Johnson
408 Federal Building
110 South 4th Street
Minneapolis, Minnesota 55401
Phone: 612-334-2311

San Francisco

CarlO. Lindeman
President
The Pacific Telephone and
Telegraph Company
140 New Montgomery Street
San Francisco, California

Newton B. McCarthy
Room 7116 - Box 36002
450 Golden Gate Avenue
San Francisco, California 94102
Phone: 415-556-3700

Seattle

William M. Allen
President
The Boeing Company
P .. O. Box 3707
Seattle, Washington

William C. H. Lewis
236 Federal Office Building
909 First Avenue
Seattle, Washington 98104
Phone: 206-682-4255

Harold S. Geneen, President
International Telephone and
Telegraph Corporation
320 Park Avenue
New York, New York

Frank R. Milliken, President
Kennecott Copper Corporation
161 East 42nd Street
New York, New York

(Note: Insert "u. S. Savings Bond. Division" in addre,s for Market Managers)
(Note: ~ telepheBe _"us are under the PTa System)

"A" Market Chairmen

st.

Paul

Robert S. Macfarlane
President
Northern Pacific Railroad
Company
St. Paul, Minnesota

roil I<.ELFASi A.!'.
ru.!dy, Janua17

NE~tSPAr~~;-i....~;

12, 1965.

JarN&1'7 ll,

ilEStTLTS CfF tK&lSURY' s

~'E!:;KL! ;1;

1)65

LL O.':FERING

The 'masury r::epartaeDt &nllOaDOed last e'ftll1ag itat 1Jle teDdel"ll tar two ..-1eI fit'
Tnanr,y billa, one ••ri•• t,o be aD add1t1..al 1ssue of t.he billa daMd o.tobeJt 15,
1964, and the other eeriea 1:.0 be dated JanuaJ7 14, 1965, v.b1ch
otten4 Oft " - "
6, wna opened at t.he ,edenl h.~ aaruca on J&DUa17 11. TeMen ....... tati.M4 , .
$l,l00,OOi),~, or tbereab01lte, of 91-dq billa and tor $1,000,000,000, . . tbeN.....W.
of 182-4&7 bUle. The de\a1la or t.he.o eeri•• are as tollowa.

w""

IWIGI OF ACCEP'nD
C\JfP!TITlVE BIDS I

High
Low
Average

68 perc:eDt of t.be aaouIlt. of 91-day billa bid tor a t the lew price . . . . . .,...
29 ptfrcent. or the .otM of 181-clq bill. bid tor a' \be 1Mr pr10e lIM . .eept ••
TOTAL l"!NnERS l??LtED FOR AND AcoarrrD DJ lI'ED[RAL

?lev York

Philadelphia

1,487,097,000

RlohaoDd

Atlanta.
Chicago
St. Loui.

4),5)4,000
26,.3S2,OOO

M1nneapoUa

Ianeu City
Dallas
SllnF'Nnciaoo
'fOULS

611,051,000
11,212,000
)1,288,000
16,640,000

29,2l2,000
)1,288,000
16,120,000
62,802,000
281,742,000

Clneland

Ii'

r.
Accett;d
K,;S,ObO t ~$l'),OOO

Applied

Gion

.J
il

i~6,'~I"RVE

41,397,'100

29,2)4,000

97,426,000
.1,_ln,730,000

DISTRICTS.

'Pilie. For

•

t
I
I

22,394,000

1,2Jb,m,OOO
14,24S,OOO
51,081,000

54,021,~)Q

18,080,000
21,006,000

124,842,000

216,618,000

36,270,000'
22,392,000'
U,Jla1,000 I

1),196,000
16,806,000

1'1, n4,OCYJ

15,,77,000

14,')5,000

SO,466,OOO
lla,!47.000
$1,lOO.lS9,OOO!l $1,8Ll,084,000

IDelu" $)12,10$,000 ftGDOOfr.peU'l" tendera acoep~d at Ule ......... pr1ee of 99.C
IMllidu S126,U),OOO
tenders accepted at the ....1'&111 priM 01 fI"
OIl • 0tNp0D llaue ot the . _ ~i(th and f~r the .... a-ount. in....t.ect, \be . . . . .
th... bID. would pronde yWdII ot ).9O:C, tar the 91-daJ bl11a, aDd
fer tI
162-da7 bUls. ra\eJ'Mt, rate. on biU. artl quoted intAru ot baDk cl~ tdtll
the ret.un related \0 tM face .ount. of 'tile bUla pqable at Jl&t,uri\J rataiii' ....
the aount 1-v•• ted ad \h.iI' laD~ in ac\ual. Dusber of d.a¥- related to a )60 ...
,..,.. 1D oantl"U\, yielda oa certificates, note., and bOl'ldB are ~ 1ft ....
ot 1nt.eN8't Oft the ..,... illY. .\ed, and relate the nuaber at day_ r.atldal 1• •
interest ~n\ period M the actual n:JJlb.~r of dalll in t.be p.~rioc1t v~tb art. '
oa.p~ 1t lION 'fa . . coupon period 18 ilWol'Y8cl.

MIIO.,.'1'!..

4.aa.,

/
,/

jL//

J--

262
TREASURY DEPARTMENT
~R ?E1EA3E A.M.

NEWSPAPERS,

Ifsday, January 12, 1965.

January 11, 1965

...-

RESULTS OF TREASURY'S itlEEKLY

R~LL O~'FERING

The Treasury Department announced last evening that the tenders for two series of
reasury bills, one series to be an additional issue of the bills dated October 15,
'bU, and the other series to be dated January J..h, 1965, which were offered on January
were opened at the Federal Heserve Banks on January 11. Tenders were invited for
1,100,000,000, or thereabouts, of 91-day bills and for $1,000,000,000, or thereabouts,
r 182-day bills. The details of the two series are as follows:
NSE OF ACCEPTED
~lPETrrIIJE BIDS:

High
LOl~

Average

182-day Treasli-~ bills
maturing July 15, 1955
Approx. Equiv.
Price
l.'11lual Rate
98.015
30926%
98.002
3.952%
98.007
3.942% 1/

91-day Treasury bills
maturing April 15, 1965
Approx. Equiv.
Price
Annual hate
99.042
3.790%
3.822%
99.034
99.036
3.8lh%

~ercent

of the amount of 91-day bills bid for Ci t the low price was accepted
29 percent of the amouht of 182-day bills bid for at the low price was accepted

iTAL TENDERS APPLIED FOR AND ACCEPT2D BY FEDERAL RESERVE DISTRICTS:

District
Boston
New York
Philadelphia
Cleveland
Richmond
ltlanta
Chicago
St. Louis
"imeapolis
_sas City
l8Uas
~ Francisco

Applied For
24,92tJ,OOO
$
1,487,097,000
29,212,000
31,288,000
16,720,000
62,802,000
281,742,000
43,534,000
26,352,000
41,397,000
29,234,000
97,426,000

Accetted
$
,910,000
671,057,000
17,212,000
31,288,000
16,640,000
54,021,000
124,842,000
36,270,000
22,392,000
41,347,000
19, 71h,OOO

TOTALS

$2,171,73 0 ,000

$1,100,159,000

50,J.~66,ooo

Applied For
$ 22,394,000
1,294,299,000
14,245,000
51,081,000
18,080,000
21,006,000
216,618,000
15,577,000
13,196,000
16,806,000
14,935,000
1122 847 2000

Accepted
$ 13,844,000

$1,811,084,000

$1,000,967,000

676,~,000

6,245,000
46,461,000
16,660,000
16,864,000
95,908,000
13,577,000
12,196,000
16,806,000
11,935,000
74 z327 2OOO

Includes $312,705,000 noncompetitive tenders accepted at the average price of 99.036
Ihcl.udes $126,113,000 noncompetitive tenders accepted at the average price of 98.007
On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 3.90%, for the 9l-day bills, and 4.08%, for the
182-day bills. Interest rates on bills are quoted in tems of bank discount with
the return related to the face amount of the bills payable at maturity rather than
the amount ir,vested and their length in actual number of days related to a 360-day
year. In contrast yields on certificates, notes, and bonds are computed in tenns
of interest on the' amount invested, and relate the number of days remaining in an
interest pa.yment period to the actual numher of days in the period, with semiannual
cOl1Ipounding if more than one coupon period is involved.
0·1L6?

TREASURY DEPARTMENT
Washington

REMARKS BY THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
BEFORE
THE MEETING OF THE INDUSTRIAL PAYROLL SAVINGS COMMITTEE,
DIPLOMATIC FUNCTIONS AREA, DEPARTMENT OF STATE
WASHINCTON, D. C.,
TUESDAY, JANUARY 12, 1965, 12:45, P.M., EST
On behalf o[ your commi ttee and mvse 1 [, Mr. Mi 11 iken, I thank
you for this exceptionally rine memento of the 1964 payroll savings
drives in industry -- a copper tray engraved with the Concord
M~ute Man insignia, symbol of the selfless spirit that has inspired
this volun teer c ommi t tee as it did those famed vo lun teers of 1775.
The 1964 Payroll Savings Campaign in industry is a splendid
example of except iona 1 volun teer serv ice to uur na t ion. The lead ing
role of business and industry in that campaign was clearly underscored
in the signing by Chairman Milliken, the 28 members of the committee,
and myself of a "Share in America" certificate urging all employers
and employees to join the campa i gn "for mu tua 1 good" of governmen t
and se 1 f .
The immediate and enthusiastic response of the business
community to the "Share in Amprica" campaign resulted in bringing
up to 40 thousand the tota 1 number of C ompan ies - - large and sma 11
conducting Payroll Savings Plans.
Response on the part of the employees was no less impressive.
About, 1,300,000 new participants signed up as payroll savers during
1964. Of these, indus try accoun ted [or a bou tone mi 11 ion - - and of
that total, some 211,000 were employees of the companies represented
on the committee. As a resul t, over-a 11 sale of payroll saver
boods -- the $25 to $200 bonds -- is running today at a record
peacetime rate of $3 billion annually, and ,1ccounting [or 64 percent
of the total E and H sales dollar.
These results -- particularly in view of the stiff competition
for the savings dollar - - are indeed an i mpre s s i ve tr ibu te to the
~n of this committee, who willingly and unstintingly gave of their
energies, their talents, their resources and their invaluable time.

- 2 Presentation of Awards to Committee Members
For these reasons, it is both my privilege and pleasure to present
to the committee members tangible evidence o[ our appreciation for
t~ir excellent work and untiring efforts during this year's Payroll
Savings Campaign. We hope it will be [or each o[ you a meaningful
~mento of the exemplary service you have rendered to your country.
This is the Treasury award specifically created to honor
exceptional service in the United States Savings Bonds program
a small token in itself, but representating much in terms of
extraordinary accomplishment. On its face is the Minute Man, symbol
o[ the Savings Bonds volunteer program, with a ring of 13 stars
representing the original colonies. On the back is the seal of the
Treasury Depar tmen t.
At this time, I would like to present this certificare to your
new Chairman -- the President of the Radio Corporation of America,
Dr. Elmer W. Engstrom.
I know that you will find him an excellent
leader. I congratulate you, Dr. Engstrom, and your committee, upon
your appointment. Dr. Engstrom, an internationally known engineer,
is a long-time supporter of the Payroll Savings Plan. As the 1964
chairman for the electronic industry, he led a highly successful
campaign -- in which his own company achieved 82 percent
partie ipa t ion.
The citation reads:
UNITED STATES TREASURY DEPARTMENT
CITATION
to
Dr. Elmer W. Engstrom
In recognition of outstanding service to the Nation
as a member of the
U. S. Industrial Payroll Savings Committee,
providing leadership and inspiration
within your company and your industry
in the promotion of
United States Savings Bonds

- 3 We have a similar certificate for each member of the 1964
committee.
I wish time permitted my presenting each one individually.
Since it does not, I have asked our staff members to present them to
you at your places. Congratulations, and my deepest appreciation, to
each of you.
Presentation of Award to Frank R. Milliken
This is the Treasury's Distinguished Service Award, a gold medal,
which was newly established last year.
It is the highest award the
fieasury Department can present to anyone outside the Department.
It
has been awarded only twice before.
It is now my pleasure to present this award to Frank R. Milliken,

fur his achievements as chairman of the 1964 industrial campaign.
First, the citation:

CITATION
DISTINGUISHED SERVICE AWARD
FRANK R. MILLIKEN
"As Cha irman of the U. S. Indus tria 1 Payroll Savings Commi ttee
for 1964, Frank R. Milliken has provided outstanding leadership for
the Treasury Department and the Nation in helping assure the sound
management of the public debt.
"By effectively dramatizing the mission of the Payroll Savings
Plan and its benefits to management, workers and the Government, he
rallied employer and employee throughout the land to vigorous
~omotion of systematic saving from pay in Series E Bonds.
The
sale of $25 to $200 denomination E Bonds is now at an annual rate of
~3 billion, its highest level since the War Loan Drives of 19421945.
"For his inspiring leadership and successful accomplishment in
a volunteer mission of the highest order, Mr. Milliken is most
deserving of the Treasury Department's Dis tingu ished Service Award.
"Given under my hand and seal this 12th day of January,
nine teen hundred and six ty five.
/s/ Douglas Dillon
Secretary of the Treasury

- 4 Mr. Milliken, I ask you to accept this medal, and its accompanying
citation with my sincerest thanks and wannest congratulations.
I
know of no one more de serv ing .
The leadership of men of your influence in the husiness community
l~ indispensable to the efforts of the Treasury Department on hehalf
of United States Savings Ronds.
As you know, th(' Savings Bonds
program is a vital link in the partnership of mutual interest hetween
citizens and their government -- for it contributes not only to the
personal security of the individual and family, hut to the financi3l
security of the community and the nation.
You are also well aware how essential the Savings Ronds program
is to the success of one of the Tre3sury Department's most important
operations -- that of debt management.
It has helped liS to finance
the national debt in a conservative, non-inflationary manner. And
it has complemented our success during the past four years in
lengthening the average maturity of the entire marketable debt
the first time that has been achieved hy any post war administration.
In the last 18 years the investment in E and H Ronds has
increased by $18.0 billion and now accounts for 22 percent of the
publicly held debt, as opposed to only 15 percent in 1946.
In the
ot~r private markets in which the Treasury has had to place
securities, while the last four years has seen an increase of
$9 bill ion, the e igh teen years since 1946 have seen a ne t decrease
of nearly $2 billion.
These figures graphically illustrate how
important the increase in the puh 1 ic' s ho ld ings of Savings Bonds,
s~rred largely by efforts such as those of this committee, has been
in maintaining a sound debt structure throughout the postwar period.
We have witnessed great progress in the advance of the payroll
savings plan over the past two years.
Yet we realize that much
remains to be done toward giving payroll savings the universal
opportunity it deserves, and needs, if it is to make its fullest
contribution to our debt managemen t program.
It is our constant objective to spread this opportunity more
Widely among wage and salary employees.
In doing so, we are almost
totally dependent upon the employer himself -- upon his personal
convic tion of the wor th of the program, and his will ingne ss to
endorse it and promote it among his employees.
This is why we
need your help.

- 5 -

You, the 1963-64 members of the Industrial Payroll Savings
c~mittee, were selected because of your leadership in America's

loremost industries, which contribute so much to the strength of our
economy, and because you personally furthered the payroll savings
program in your own companies. These same factors led us to invite
the new members who have joined our commi ttee today.
They, 1 ike
t~ 1963-64 members, enjoy wide acquaintance and respect within their
industries, and will meet with the same favorable response from their
counterparts in other companies when they ask for support of the
payroll savings plan.
The 1965 Committee will have a new marketing approach and a new
goal. Its members have been chosen because they are not only highly
influential within their individual industries, but because they are
also key leaders of their respective communities and market areas -27 of the largest in the nation. While the scope and significance
of the committee is nationwide, its success will depend upon the
achievements of each individual member as Market Chairman of his own
~tropolitan area.
Each will have the task of organizing Payroll
Savings Campaigns among all of the large companies of his area -providing the leadership and inspiration that will encourage your
fu110w industrialists to take part, and thus to offer the opportunity
of Payroll Savings to your entire community.
Our industry-wide goal is the enrollment of one million one
~ndred thousand new participants in 1965.
I am confident that it
will be reached with your help. Later this afternoon, Mr. Neal
will give you more particulars about this new marketing approach,
furnish details of the campaign, and inform you regarding the staff
members who will ass is t you.
I am delighted to announce at this time that the committee's two
chairmen, President Harold S. Geneen of International Telephone
md Telegraph and President Frank R. Milliken of Kennecott Copper,
have agreed to serve the committee as members-at-large. Their past
experience in spearheading this committee at the national level should
prove invaluable.
~st

We will be following your progress next year with keen interest.

We will be working closely with you, helping you in every way possible.
I am sure that next fall you will once again be able to report another

outstanding year.

000

oCo
REMARKS OF FREDERICK L. DEMING
(UNDER SECRETARY OF THE TREASURY FOR MONETARY AFFAIRS DESIGNATE)
AT THE INDUSTRIAL PAYROLL SAVINGS COMMITTEE MEETING,
WASHINGTON, D. C., ON JANUARY 12, 1965

I am grateful to have this opportunity -- even before
officially taking office -- to appear before this distinguished
group of American business executives who will be spearheading
this year's national payroll savings campaign in business and
industry. With the exception of former Chairmen Geneen and
Milliken, who wi 11 be serving as members a t large on this year's
committee, you are, as I am, new men on the job.
But neither you
nor I are newcomers to the program and its benefits to the
Nation and its people.
Each of you has been selected to head up the payroll savings
program in your area because of your demons tra ted pers ona 1
interest, your willingness to lend your prestige to its advancement,
and, of course, your willingness to volunteer the time, energy
~d resources that will be essential to a successful campaign in
your area. The full resources of our Savings Bond staff will be
at your disposal in implementing your plans and objectives.
Fortunately, you as I, will also have the benefit of the
work and experience of our predecessors.
Bu t we are dependen t
upon you gentlemen to supply the critical ingredients of
leadership and direc tion essential to reaching the goal of over
one million new participants.
All of us in the Treasury who carry a part of the
responsibility for managing the debt are particularly conscious
of the immense contribution the payroll savings program can and
~s made to the sound handling of our Nation's finances.
Today,
E and H Savings Bonds account for more than $48 billion -- or
22 percent -- of the publicly-held Government debt. New sales
have held at consistently high levels, amounting to $4.6 billion
last year, equivalent to 40 percent of our total cash financing
Wer the same period. Moreover, the heart of the entire Savings
~nd program lies in regular payroll savings plans of Series E
bonds, which have grown to the point where they now account for
some 60 percent of all E bond sales.

- 2 -

But, the vital importance of this program to our financial
health and well-being cannot be found in these figures alone.
The holdings are widely dispersed among our citizens at all
income levels. By and large, they represent the net result of
gradual accumulations over the years. In this way, the Treasury
has been able to tap an immense source of funds that would
otherwise be difficult or impossible to reach, and to do so
without an abrupt and potentially damaging impact on flows of
savings through our financial institutions or to other borrowers.
These direct benefits to the Treasury have their counterpart for
the individual, for he has been afforded a convenient means for
obtaining an absolutely safe investment, promptly convertible
into cash, at an assured rate of return over a number of years.
And the Nation itself is strengthened, in ways no less important
for our inability to measure then precisely, by enabling all our
citizens to take a direct part in the sound financing of his
Government, to learn regular patterns of savings, and to build
their family security.
The widespread participation of the American public in
this program testifies, I believe, to a recognition of the
continuing worth of savings bonds in personal financial planning.
But even more important, this kind of personal participation -unmatched in any other nation -- seems to me to reflect a public
confidence in the integrity of our currency and in our financial
policies that is a unique source of strength to the United States.
As President Johnson pointed out in his State of the
Union Message, we are entering a third century of quest and
purpose in our union. We have built strong foundations. We
are today in the midst of the most prolonged upward surge in
economic progress in our history -- and this advance has been
marked by price stability unequalled in the world. Nothing is
more important to our continued prosperity than maintenance of
this price stability. And, as I take office with you, I am
especially conscious of the contribution of the savings bond
program to this record.
Looked at from the more parochial view of my immediate
responsibilities, every dollar of savings bond sales means just
that much less cash that we have to raise through marketable
issues. With savings bond sales running to $4-1/2 billion a
year -- about the same amount as the net increase in our marketable
debt in recent years -- this has clearly been of critical
significance in easing the task of the debt managers.

- 3 For instance, the Treasury in recent years has made
considerable progress in restructuring our marketable debt,
increasing the average maturity from a low of 4 years and 2 months
in 1960 to roughly five years at the end of last year.
By seizing
favorable opportunities in the market as they appeared, and by
developing new techniques, such as the advance refunding, this
could be accomplished without disturbing the flow of funds to
homebuyers, businessmen, state and local governments, and
consumers at a time when it was important that the availability
of credit to those borrowers be unimpeded.
Could this progress have been made if the savings bond
program had not been functioning so effectively? The answer is,
I think, self-evident. Either there would have needed to be
more use of short-term borrowing and reliance on commercial bank
financing -- with potentially inflationary consequences -- or
the volume of long-term Treasury financing would have had to be
vastly increased, with the attendant risk of diverting too many
funds from other borrowers and imped ing our economic advance.
I have no blueprint to give you today on the specifics of
Treasury debt management in the year ahead. Necessarily,
decisions on major refundings and new money borrowing can only
be made in the light of money market and general economic
conditions prevailing at the time these financings are undertaken.
fut I can assure you that we are going to make every effort to
maintain a well-balanced debt structure. And we are also
determined to finance the Government's new money needs by drawing
upon the savings generated by a growing economy in ways that will
not contribute to inflationary pressures.

Your savings bonds campaign efforts will play an important
part in this effort. Not only will savings bonds sales help
hold down our marketable borrowings to manageable proportions,
but when we sell savings bonds we are attracting genuine savings
into Government bonds for an average period of around seven years.
A little later this afternoon you will be given a technical
presentation of the ways in which the savings bond program
contributes to sound public debt management. Also the campaign
materials you will have at your disposal stress the importance
of the program to the Nation as well as the individual investors.
One point I particularly feel that is important that we get
across to the American public in this "Star-Spangled" campaign
year is that every citizen buying savings bonds is making a
personal contribution to the soundness of the American dollar.

- 4 The effort to avoid inflationary pressures requires many partners.
Business and labor share special responsibilities in maintaining
a relationship between wages, productivity, and prices that can
~rmit us to prolong our recent excellent record of cost and
price stability. The consumer also has his responsibilities
through his spending and saving decisions. Millions of Americans
can contribute to the Government's efforts in a personal way by
investing at least part of their savings in United States savings
bonds.
Moreover, it must be kept in mind that the success of our
efforts to maintain a sound dollar is not only important
domestically, but it is also important in the international
posture we present to other nations. The United States is the
banker for the entire Free World. If we are to merit the continued
confidence of other nations in the soundness of the American
dollar -- confidence upon which much of the international payments
~chanism of the entire Free World is based -- we must continue
to so handle our financial affairs that foreign holders know
t~ir balances here are fully useable in practice and fully safe
in princ ipa 1.
Certainly a basic factor in stemming the gold outflow and
reducing the balance of payments deficit from the high levels
prevailing in 1958-60, on which my predecessor has worked so
relentlessly and effectively, has been a restoration of
confidence in the dollar abroad as a result of this country's
maintenance of price and cost stability. I know, too, the
special interest with which our friends in other industrialized
countries follow our financing programs, because of the
implications of these programs for price stability. So, the
success with which you carry forward your campaigns will make
a basic contribution to resolving our international problems,
as well as to sound financing at home.
There are, of course, many facets to this international
balance of payments problem which, unfortunately, is still
very much with us. While much as been done, much still remains
to be done to eliminate the deficit. We have learned that it is
not an easy problem with which to deal -- progress has too often
been interrupted -- and we cannot be satisfied until equilibrium
is restored.
There are solid grounds for satisfaction. Our commercial
exports reached a new record in 1964, rising $4.3 billion or
25 percent over the leve Is of 1960. To be sure, imports have a Iso
risen, but less than might have been expected given the growth
NOTE:

Figures for 1964, seasonally adj us ted annua 1 rates on jus t
three quarters.

7 ')

- 5 -

of our economy. As a result, our commercial trade surplus
increased to $3.6 billion. And, with investment income rising
steadily, our balance on all commercial goods and services has
risen to $6.8 billion, a gain of $2.4 billion from the 1960 level.
At the same time, we have cut the net outflow of dollars in
our defense and military programs by some $0.7 billion. Taking
these two major components of our accounts together, savings
since 1960 have been almost as large as the total deficit in
1960.

The difficulty, of course, is that these gains have been
partly offset by rising capital outflows. Developments in
that area reflect, of course, a great many influences. In
some part, for instance, rising capital outflows are a
counterpart of our improved export performance.
At times, outflows of liquid funds have been induced by
interest rate differentials, although we have been successful
in recent years in minimizing those incentives. More important
have been continuing structural imbalances in the size and
efficiency of capital markets among the developed countries,
as well as a tendency for controls and restrictions to linger
on in some potentially important foreign markets.
I cite these problems in the capital area not to imply
that the full burden of the remaining adjustment should fall
in that area, but to emphasize the complexity of the influences
on the balance of payments and the need for a coordinated attack
on all parts of that problem. This attack has included some
direct and selective measures that, however, necessary today, we
would not want to use as permanent policy instruments. That
is true, for instance, of our tying of aid and the Interest
Equalization Tax.
We cannot relax until our accounts are in equilibrium and
we can dispense with these measures that in some degree might
conflict with longer range goals of freer trade and payments.
And this brings me back to where I started -- the critical
importance of cost and price stability and sound financial policies.
In this effort on all fronts to protect the value and
integrity of the American dollar, I cannot stress too
emphatically the integral place which is filled in this panorama
~ the savings bond program on which we are focusing our attention
here today. A vigorous payroll savings drive thoughout industry

- 6 -

and business will make it possible for the Treasury to finance
a part of the Federal Government's borrowing needs through the
voluntary savings of millions of American people. That will
provide one of the most effective direct avenues for each
American to make his individual contribution toward the same
objectives that I have mentioned for the various arms of
Government and for the business and financial communities.
It is because of the crucial significance of this voluntary
program that I hope you will find your new assignment both
satisfying and challenging. We are placing on you a major portion
of our hope for the success of this year's "Star-Spangled Savings"
campaign.

000

fO \. a..ry IiASE A. l~. ;;~;~JS ~AP ,;RS ,

Wednesday, January 13,

Jan1al7

12, 1965

1~5.

RESULTS OF TR?.AS1JRt'S OFFS,R ('6 A,1l0ITIOlUL
$1-3/4 iULUOh {~ JUN:!: 1A.X BILLS

'lne Treasury Depart:r.ent a rnou.nced lut eY4IJl1Dg that tn. teDCier. tor . . acIcU.\10MJ
11,'750,000,000, or t.hereabouts, ot the Tax Anticipation Serie. Treanry bWs claW
.NO'Yember 24, 1964, and to mature JuDe 22, 196$, were opeued at the 'ecMral BMene ...
on January 12. The additional uount or bUls, 1IIhion nre .ttend on _\1&1'76, wUl
i.Bued January 18 (155 days to maturity date).
'1 he details of this issue are a. tollow••

'1'otal applied for - i4,037 ,167 ,000
Total ~cepted
- 1,750,567,000

(1acludes $233,)67,000 entered on a
DODoompetit1.... baa1. and acoept.ecl 111
tull at the avwAie price Ihovn ~)

ilaru;e of accepted oompetitiTe bids. (Exoepting 2 tenden totaling '5,700,000)

-gS.411 lqu1valent rate of disoouat approx. ).691S per _

d1gh
Low

98.)99
"
""
"
•
). nal·
98.402
"
.."
"
II
) . n1~"
anount bid tor at the low price va. acoepted)
-

Average
(26~

Federal he8erve
District

Boaton
New torr;.
Pniladelohia
Cleveland
Rich:t;ond

Total

'!plied 'or
$ 184,476,000

Accepted

1,669,140,000
llS,754,000
255,981,000

Atlanta
Chl. ca60

418,1)4,000

257,914,000

65,$80,000

Ul'lsaa City
llallaa
San Francisco

69,072,000

)00,895,000
609,81$,000
T JIAL

379,698,000

62,040,000

104,105,000

$4,037,167 ,O!)Q

• 137,876,000
46,27h,OOO
75,861,000
54,040,000

121,51$,000

St. Lo~ia
.ti.n~apoli.

Total

•

75,215,000

55,980,000

29,605,000
42,8)2,000

10),285,000

491,987,000
11,750,567,000

amount inv..te<l, the ret...
rate. on bU1. are qUlOt,ecl la.
race UloUD't. ot the bUla paJI
length in actual nu.ber .f •
related to a J60-day ;,.ar. In contrast, yields on certificate., note., aDd bOlida •
co!lputed in tens of int.ereet on the amount inve.ted, and. relate the DUllber of dill
remaining in an intereat pay:nent period to the aotual nuaber of da)"8 1n t!w penH.
with . .miannual oompoundlng if ~re than one OOUDOn period 1s 1nTo1Ted.
In a coupon i.ssue of trle same length and tor the 8&1118
theee bills would provide a ,:rield ot ).82~. Intereet
tartd of bank di8CO~..Jnt wit.! the return relat.ed to tne
at :naturity ratner ttlan the UlOunt inTe.ted and their

TREASURY DEPARTMENT

January 12, 1965

FOR RElEASE A. 11. NEWSPAPERS,
~esday, January 13, 1965.

RESULTS OF' TR..r..:ASUrU' S OFF:;R. OF ADDITIONAL
$1- 3/4 BILLION 11, JUNE '1 AX BILLS
The Treasury Department announced last evening that the tenders for an additional
750,000,000, or thereabouts, of the Tax Anticipation Series Treasury bills dated

ber 24, 1964, and to mature June 22, 19b5, were opened at tne Federal Res8rve Banks
• January 12. The additional amount of bills, which were off'=red on ,Tanuary 6, will be
issued January 18 (155 days to maturity da [,2: •
The details of this issue are as follows:
Total applied for - .Jli4,037 ,167 ,000
Total accept ed
1,750,567 , cuo

(iilCl.udes ~d3,jo7 ,uJu Cl. ,'~L.,,; ..I.
iDrlCv,T.pct.itive lX13is "'-.)(1 ",~(.<s:tc(~:;"n
full at t,1;; <iVera.:,8 Dric;,; :':;lu.[, ,_<=10 1";,

Range of accepted competi ti ve bids: (Zxceptin;; 2 t2ndcr::: total"i n
High

Low
Average

~.J\. ' ,~

,,'

annum
98.411 Equivalent rate cf disco1mt approx. 3.o'Jl,;, r er
n
II
II
I
II
II
3."7 is;
98.399
"II
'1
II
II
II
1\
~. 711:,
98.~02
~/
~

Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
l1inneapolis
Kansas City
Dallas
San Francisco

Total
Applied ?or

Accepted

184,476,000
1,669,140,000
115,754,000
255,981,000
62,040,000
121,515,000
478,134,O()0
6~,)bO,OOO

104,705,C()u
6:} ,'.'i? ,C!(\~
300,; )"6, ,)O()
_.-,;.0_0_1 f~ _~,...:. ':'Or:
,

TV1AL

9n a coupon

'.u: ./. 7,)r 'j(I")
u

a:4,U)'i.: 7, .... 'J

13 7 ,876,000
379,6/6,C I OO

46,27Li,OOO
7') ,661, (I'JO
5)~, 040, OIJO

'h ,2E' ",,)lJ
2)7, }lLi,ui>")
~;; J 9aO, 000
2) ,uO.), iX10

L.2 ,832 ,nel(l
103,2u;),\..~'c
\
]
07 II ~

'L'

; )'LJ

_u\...

,;iiI, ( ; 'J , S6 7 ,u'JO

issue of the same lenGth and for the same amount inves ted, tile return on
Interest rates on bills are quoted in
terms of bank discount with the return related to the face amount of the bills payable
at maturity rather than the amount invested and their length in actual number of days
related to a 360-day year. In contrast, yields on certificates, notes, and bonds are
computed in terms of interest on the amount invested, and relate the number of days
r~maining in an interest payment period to the actual number of days in tie period,
~th semiannual compoundins if more than one coupon period is involved.

~hese bills would provide a yield of 3.82 fo.

D-Jl63

TREASURY DEPARTMENT

January 12, 1965

FOR IMMEDIATE RELEASE
TREASURY MARKET TRANSACTIONS IN DECEMBER
During December 1961, market transactions in
direct and guaranteed securities of the government
for Treasury investment and other accounts resulted
in net purchases by the Treasury Department of

$116,773,000.00.

000

D-1464

TREASURY DEPARTMENT

January 12,

FOR IMMEDIATE

1965

RE~ASE

TREASURY MARKET TRANSACTIONS IN DECEMBER
During December 1961, market transactions in
direct and guaranteed securities of the government
for Treasury investment and other accounts resulted
in net purchases by the Treasury Department of

tl16,773,OOO.oo.

000

D-1464

TREASURY DEPARTMENT

FOR IMMEDIATE RELEASE

January 12, 1965

PRELIMINARY RESULTS OF TREASURY'S ADVANCE REFUNDING
The Treasury Department today announced its satisfaction with the response to
its advance refunding offer. About $8,996 million of public holdings were exchanged
for the three offered issues, 40.7rf, of the total of $22,124 million of the eligible
issues held by the public. In addition, official accounts, which held $10,952 million of the eligible securities, subscribed for $702 million.
The large public subscription for the new issues, and particularly for the
bonds of 1987-92 , gives impressive evidence of investors' willingness to extend the maturity of their holdings into longer-term securities. Their action
reflects the basic confidence in the stability of the long-term market that arises
from the continuing large flow of :funds seeking investment opportunities. The large
public subscription also will reduce and accordingly facilitate the Treasury's refunding tasks in the next three years. The Treasury will have sufficient flexibility
in its cash needs and refinancing opportunities, however, to supply whatever volume
of Treasury bills that may be needed to maintain a reasonable international relationship among short-term interest rates.

4-1/4~

Subscriptions from the public include $4,028 million for the 4% bonds of 1970,
$2,787 million for the 4-1/8'1> bonds of 1974, and $2,181 million for the 4-l/4rf, bonds
of 1987-92. Subscriptions from official accounts include $322 million for the 4'1>
bonds of 1970, $325 million for the 4-1/8'1> bonds of 1974, and $55 million for the
4-1/4~ bonds of 1987-92.
Following is a breakdown of securities to be exchanged for the securities to be
issued (in millions):
S~URITIES

_ ELIGIBLE FOR EXCHANGE
--Amounts
Securities

-2·S/si

-----

bonds, 1965
3'1/2~ notes, B-1965
4i notes, E-1965
3,s/ei notes, B-1966
3'7/e~ notes, C-1966
3-3/4% bonds, 1966
3·3/4~ notes, A-1967
3- s/si bonds, 1967
Total

4~
Bonds
1970

$ 3,976
2,954
8,560
3,260
4,040
2,250
4,433
3 2604

$33,077

$4,350

672
637
175
583
367
306
895
715

4-1/810
Bonds
1974
$

508
415
154
320
403
117
457
738

$3,112

TO BE ISSUED
4-1/410
Bonds
Total
1987-92
628
282
145
144
660
120
137
120

$1,808
1,334
474
1,047
1,430
543
1,489
lz573

$2,236

$9,698

Total
unexchanged
$ 2,168
1,620
8,086
2,213
2,610
1,707
2,944
2 z03l
$23,379

Details by Federal Reserve Districts as to subscriptions will be announced later.

D-1465

TREASURY DE]>AR'OO!%fr
Washington, D. C.

IMMl!D lATE RELEASE

THURSDAY, JANUARY 14, 1965

D-1466

The Bureau of CUstoms announced todq prel.1m1nary' figures showing the
quanti ties of wheat and milled wheat products authorized to be entered, or
wi thdrawn from warehouse, for consumption umer the import quotas established
in the President's proclamation of Mq 28, 1941, as mod1t1ed bY' the President'
proclamation of AprU 13, 1942, am provided for in the Tariff Schedules of
the Unitsd States, for the 12 months commencing Mq 29, 1964, as follows:

••
••

Country
of
Origin

Milled wheat products
••
••
•
Imports
: Established :
Imports
Established •
Quota
Quota
:Mq 29, 19 61;
:Mq 29, 1964~ :
;J anuary 11, .
;J anuary 11, 1 65 i
••
(PoUDis)
(Poums)
(Bushels)
(Bushels)

Canada
China
Hungary'
Hong Kong
Japan
Un! ted Kingdom
Australia
Germany
Syria
New Zeal8Di
Chile
Netherlands
Argentina
Italy
CUba
France
Greece
Mexico
Panama
Uruguq
Polam am Danzig
Sweden
Yugoslavia
Norwq
Canary Islal'¥is
Rumania
Guatemala

Wheat

795,000

•

795,000

100
100
100
100
2,000
100
1,000
100

3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000

3,815,000

120
397

1,000
1,000
1,000
1,000
1,000
1,000
100
100

BrazU
Union of Soviet
Socialist Republics

100
100

Belgium
Other foreign cauntries
or areas

900,000

795,0(I.J

4,000,000

3,815,517

TREASURY DEI>AR'lHPBr
Wuhington, D. C.

DOO!DIATE RELEASE

THURSDAY, JANUARY 14, 1965

D-1466

The Bureau of CUeto. . announced todq prel1minary' figures showing the
quantities of wheat and mUled wheat product. authoriled to be entered, or
withdrawn trom warehouse, tor conllUJllptlon under the import quotas established
in the Preeident'e proclamation ot MQ' 28, 1941, as moditied by the President's
proclamation ot AprU 13, 1942, am provided tor in the Tariff Schedules ot
the United Statee, tor the 12 month. coumencing M83' 29, 1964, &8 tollows:
••

:
:

Country

ot
Origin

·
·••
·;
•

••

••
••

Wheat

••: Established
Quota

:
;

(Bushels)

795,000
Canada
China
Hungary
Hong Kong
Japan
100
Un! ted Kingdom
Australia
100
Gel"lWlY
100
311"ia
Hew Zealao:1
Chile
100
Netherlands
Argentina
2,000
Italy
100
Cuba
France
1,000
Greece
Mexico
100
Panaaa
Uruguq
Polm1 and Danzig
Sweden
Yugoslavia
Horvq
Canary IslaD1s
Rwaania
1,000
100
Guatemala
BruU
100
Union ot Soviet
Socialist Republica
lOO

Belgium

.•

Imports

:Mar 29,

1964~

Milled wheat products

: Established :

:
;J anuary il, 1 65;

Quota

(Bushels)

(Pounds)

71)'i,000

3,815,000

Imports

:Mar 29, 19 6\

;January 11,
(PoUD1s)

3,815,000

24,000

1),000
13,,000
8,000

75,000
1,000
5,000
5,000
1.000

120
397

1,000
1,000

14,000
2,000

12,000

111 OOO
1,000
1,000
1,000
l,COO
~OOO

1,000
1,000
1,000
1,000

100

Other toreign cauntrles
or areas

8(X),OOO

79S ,000

4,000,000

3,815,517

965

TREASURY DEPARTMENT

Wa.hington, D. C.

D-1467

n.t.fEDIA TE !\ELliSE

THURSDA Y ,JAN. 1 4 ,

1965
PRELIMINARY

DATA ON IMPORTS FOR CONS1.,'MPTION OF UNldANUFACTURI:D LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED
BY PRESID1'NTIAL PROCLAMATION NO. 3257 or SEPTEMBF.R 22, 1958. AS MODIJ'IED BY 'rHE TARI~r SCHEDULES or 'l'HE
lJNIT~n STATES, WHICH BECAME ETfJl',cTIVE AUGUST 31, 1963.
OUAR'l'\<:RLY QUOTA. PERIOD IMPORTS -

ITW 925.01Country

.f
Produotion

October

1, 1964 - December 31, 1964

October 1, 1964 - De~en,ber 31, 1964

ITEM 925.03-

Leat-beariDg oree
and DI& teria1.

Umrrought lead aM.
lead wa.te and .crap

••
I

s
s

ITEM 925.04-

ITEM 925.02.
I

Zine-beariDg ores ani
material.

• Umrrought duo (exoept allCIJ'
I

: .t zino

aDd zillO dust) aDd
zillO waste aD4 .era,

Iq>orta
.!.u tral1a

11,220,000

22,540,000

Belgiwa and

~ (total)

BollTi..
Canada

5,040,000

3,952,137

13,....w,000

10,708,438

15,920,000

66,480,000

Vexioo

So. Urioa

16,160,000

1.4,880,000

oountries (total)

37,840,000

36,875,799

70,.480,000

51,900,859

6,320,000

6,320,0dI0

12,880,000

12,879,982

35,120,000

3,760,000

3,759,9.

5.....w,000

5,438,8

6,080,000

6,077,868

14,880,000

yugos1aTia
All other

37,840,000

36,880,000

Republlo of the Congo
(formerly Belgian Congo)
-~.

6,422,440

3,600,000

Italy

Peru

7,520,000

6,560,000

3,87°,952

-S.e Part 2, Appendix to Tariff Sohedules •
••Republic of South Afrioa.

15,760,000

6,080,000

4,059,440

17,840,000

TREASURY DEPARTMENT
Wuhington, D. C.

D-1467

D&lEDIA TE RELEASE

THURSDA Y ,JAN. 1 4 ,

1965

PIU:LDfiNARY DATA ON IMPORTS FCR CONSL'MPTION or UNldANUTAC'l'URED LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED
'l'HE
BY PFESIDrNTliL PROCLAMATION NO. 3251 OF SEPTEMBF.R 22, 1958, AS MODITIED BY THE TARI~ SCHEDULES
\.iNITO;D STA. TtS, WHICH BJ.Xa).1I; ETnCTIVt AUGUST 31, 1963.

OU.A.Rl'DU..Y QUOTA PUtIOD IMPORTS -

ITIlI. 925.01-

Pr04uotiol1

1, ;164 - :'e ,er.bel" ;1, 1964

•

lTD(

ITI:M 925.02-

TJDrroU4ht lead aM

oree
&lld material.

Oeto~er

1}64 - Jecemver 31, 1364

~25_03-

~aa-bearl~

CouDtl1"

Ootooer l,

I
I

lead .... te &lld scrap

•

925.04-

Za.-beariD4f oree
materials

I
anj

•

a Umn-ought ziAo (exoept al1or'
: .f zina aDd zinc d.Wlt) aDd.
dna W'U te &D4

'C"a.

- - - - - - - ;Qii&TterlY-O:UOT..~'-'~-~-i1:iuarterly QUou.- - - - '---~"i,. tnio&-:Oii&iteriy blii£.
t o.tiable le .. d
" Im.p,orte: Dntiable l.eai
Import.: Z11lO Content
Importe
By We~
-----rro-uliUl
(pOUiiLr
(Pinnis 1
\~)
Auatralla

11,220,0())

'1,22"gC.',,,

22,540,000

22, 54C" uC

Belgl18 aDd

~ (total)

Bol1T1a
CaDa4a

5,040,000

3,,]5<,137

13,......0,000

10,708,4)8

15,920,000

15,,]20,000

66,490,000

66.480.000

Werloo
16,16Q,000

Peru

6,422,..0

37,840,000

)7,840,000

16,160,000

36,880,000

36,875,7']']

70,..ao,000

51,,00,85']

6,320,000

12,880,000

12,87,].,]82

35,120,000

35,120.000

3,760,000

3.75,],,15

5,440,000

5,4)8,847

6,0130,000

',077,868

Re,ubllo of the CoDCo
(foJ'lDerly Be141an Ccmgo)
So.

7,520,000

3,600,000

Ital,.

--un.

!laporte

:w,880,OOO

14,880,000

Y1IgoalaTia
.&.ll other

oOUDtrie. ('to'ta1)

6,560,000

),810,'52

-s •• Part 2, AppeD4ix to Tariff Sehedu1es.
"Republio of South Alri_.
PRKP.uu:D DI 'nIZ BURJ:A.U OF CUS-rCUS

15,760,000

6,080,000

4,05~.440

17,840,000

FOR IMMEDIATE RELEASE
THURSDAY, JANUARY 14, 1965

TREASURY DEPARTMENT

Waahington, D. C.

D-1468

PRELIMINARY DATA ON IMPORTS FOR CONSL'MPTI0N or UNlwfANUFACTURED LEAD AND ZINC CHARGl:ABLE TO THE C:UOTAS ESTABLISHED
BY PRESID1'NTlAL PROCLAMATION NO. 3257 OF SEPTEMBER 22, 1958, AS MODIFIED BY THE TARI:;'F SCHEDULE;S or 'J'HE
IJNIT1i;D STATES, WHICH BECAME ETfF,GTIVE AUGUST 31, 1963.
OUAR'l'ffiLY QUOTA. PERIOD -

IMPORTS ITW 925.01-

Country

J&l'Uary

1~65

- Iokreh 31,
-

January

and materiala

1~65

1~65 (or

ITEM 925.03-

Leu.-bearing orea

Procluotion

January 1, 1~65

••
•

UDrrought leacl aM.
leacl waa te anel acrap

s
s

!loS

noted)

ITEM 925.02'-

ITEM 925.04·

Zine-bearing ores and.

materiala

••
• Uawrought zino (exoept alla,a
:

of z!no aDd. zinc elua t ) aDd
zinc wast. aDd. aera,

orta

ll,220,OOO

.!.uatral1a

11,220,000

22,540,000

70,624

Be14iUlll and.
lAlDmburg (total)

Bolina
Canada

5,040,000

··'8,417

13,440,000

···155,186

15,920,000

1,56~,918

66,480,000

66;480,000

Italy

Verloo

36,880,000

Peru

16,160,000

2,353,564

12,880,000

So • .!.trio.

lA,980,000

6,560,000

IN TID.: BUREAU O:r CUSTCM5

5,2~,,2'8

3,600,000

·"1;722,414

•

3,178,688

6,320,000

35,120,000

5,902,000

3,760,000

1,699,50

··'7,440,000

··'1,0)4,,88

-So. Part 2, Appendix to Tariff Sohedules •
••Republio of South Atrioa.
···x.port. &8 of Janu~ 11, 1~65.
PRJ:P~

37,840,000

5,440,000

yugos1ana
li1 other
oountries (total)

···~24,032

70,~,000

Rapublio of the CoDCo
(formerly Belgian Congo)
.~n.

7,520,000

15,760,000

-··27g 622

6,080,000

·'·2,108,80,

11,840,000

••• 13,043,375

6,080,000

···),'36,670

FOR TIMMEDIATE RELEASE

TREASURY DEPAR'rNEN'l'

THURSDAY, JANUARY 14. 1965

Wubingtou, D. C.

D-1468

PRELDmIARY DAtA ON IWPORTS FOR CONSl.'MPTI0N OJ' UNl.fANUFACTURED LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED
BY PRESIDENTIAL PRCCLAMATIClf NO. 3257 or SEP1'IMlF:R 22, 1958, AS MODrrn:D BY 1'HE TARIIT SCHEDULES 0" 'l'HE
uN:[Tli;D StATES, WHICH BIXalo1E EJTI:CTIVE AUGUST 31, 1963.

OUlRTrnLY QUau PERIOD IMPORTS -

ITDI 925.01'

oree
aDd materiab

Pr0411O'tie

1, 1,65 -

J&lU&17 1,

1,65 -

MlLrcb 31, 1%5
1,65 (or aa noteel)

JanU&l")' 8,

Il'Dl 925.03'

Leu-bearl~

Ccnaaby

JanWU"7

••

u.rought Ie. . aM
lead 'WaS te ani scrap

ITEM 925.04'

925.02'
t

Zu.-beari~

ore.
materials

au.

•• u.rroug'bt zlDo (exoept alleys
:

. f ziDo aDd. z1Dc aut) aDd
ziDo
UI4 ......,

,....t.

lJIIIIorta

.-:(

1l,220,000

.A.utralla

~~=

11,220,000

22,540,000

70,62.

total}

Bol1Ti&

Ce ne4.

5,040,000

···8,417

13,440,000

···155,186

15,920,000

1,56",18

66,480,000

66.480,000

Italy

36,880,000

Uerleo
16,16Q,000

Peru

16,160,000

2,353,564

12,880,000

lA,880,OOO

~oa

-s••

6,560,000

-rwr.

BUIOEA-U

OF C:UST~

3,600,000

···1,722,41.

6,320,000

35,120,000

5,,02,000

3,760,000

1,6",~

·--7,440,000

··-1,034.'88

2, Appendu to Tariff Sehedul.es •
••Repub11.o of South Ah"1.oa •
••• x.po~. . . . t ~ 11, 1"~.
PJa:P~

5,2~,,2i6

5,440,000

YugoalaT1a

.All other
oowrtrlea (total)

37,840,000

3,118,688

of 'the CoDCo
(lonM!1"ly Belgian Coago)
So.

···~24,O32

70~,000

~llo

-eua.

7,520,000

15,760,000

'·'271>622

6,080,000

···2,108,so,

J.7 ,540,000

•••13, 04 3,375

6,090,000

···3,'3',''''

-2-

COTrON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
Es tab l.i shed
TOTAL QOOTA

Country of Origin
United Kingdom ••••••••••••
Canada .................... .

France ••••••••••••••••••••
India and Pakistan ••••••••
Netherlands •••••••••••••••
Switzerland...
• ••••••••
Belgium.....
Japan. . . . . . •

. •••••
. ....•

China ••••••••••••.••••••••
Egyp t .•.......••••.•••••••

Cuba ••••••••••••••••••••••
Ge rmany •••••••••••••••••••

Italy •••••••••••••••••••••
Other, including the U. S.

Total Imports
Established :
Imports
1/
Sept. 20, 1964, to:
33-1/3% of: Sept. 20, 1964 Jan. ll, ]. 963_______:_Tgt§l._1_Qug~a_: __ 1o_} an. 11, 1965

4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263

1l,713
239,393

25,425
...,

25,443
7,088

5,482,509

319,795

1,599,886

11 Included in total imports, column 2.

1,441,152
75,807

43,264
22,747
14,796
12,853

TREASURY DEPAR'IHElIT
Washington, D. C.
IMMED lATE RELEASE

THURSDAY, JANUARY 14, 1965

D-1469

Preliminary data on imports for consumption of cotton ani cotton waste chargeable to the quotas established by
Presidential Proclamation No. 2351 of September 5, 1939, as amerxled, arxl as modified by the Tariff Schedules of the
United States which became effective August 31, 1963.
(The country designations in this press release are those specified in the apperxiix to the Tariff Schedules of the
United States. There is no political connotation in the use of outmoded names.)
n

Country of Origin

Egypt and Sudan ••••••••••••
Peru •••••••••••••••••••••••
India and Pakistan •••••••••
China ••••••••••••••••••••••

Mexico •••••••••••••••••••••
Brasil •••••••••••••••••••••
Union ot Sorlet
Socialist Republics ••••••
Argent~ •••••••••••••••••

Haiti ••••••••••••••••••••••
Eeu8dor ••••••••••••••••••••

Established Quota

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723

Imports

Country of Origin

Established Quota

Honduras ••••••••••••••••••••

25,484
1,785,924

475,124
5,203
2'5l
9,333

••••••••••••••••••••
Colombia ••••••••••••••••••••
Iraq ••••••••••••••••••••••••
Par~

British East Africa •••••••••
IDionesia aJXl Netherlaois
!I Hew ~ •••••••••••••••
British W. Indies •••••••••••
~I B1ger.1a•••••••••••••••••••••
"" Britiab V. Africa. ••••••••••
Other. 1mluding the U.s ....

EJtcept Barbados, Benuia. Jamaica. Trinidad, ani Tobago.
EJtcept Nigeria am Ghana.
.
Cotton l-1/St. or more
Established Year~y Quota - 45.656,420 1bs.
Imports Auggt. 1. 1964 - January il, 1965
Staple Length
1-3/Sn or more
1-5/32" or more ao:l under
1-J/St. (Tanguis)
1-l/Stt or IIIDre and under

Allocation

Imports

39. 590. Tl8

39,590,778

1.500.000

9,665

752

871

124
195
2.240

71.388
21.321

5.m

16.004

Impnrt.s

TREASURY DEPAR'1J4»IT
Washington, D. C.

:IMMmIATE RELEASE
THURSDAY, JANUARY 14, 1965

0-1469

Prel.1a1nar;y data on imports for consumption of cotton am cotton waste chargeable to the quotas established by
Presidential Proclamation No. 2351 of September 5, 1939, as amerxled, and as mdified by the Tariff Schedules of the
United States which became effective August 31, 1963.
(The country designations in this press release are those specified in the appemiix to the Tariff Schedules of the
United States. There is no political connotation in the use of outmoded names.)
COT'I'OH (other than linters) (in poUDis)
Cotton UDier 1-1/8 inches other than r'OU8b or harsh uoier
~rt1J S~~~ 2O___ l~64 - Jan~-L J,965

Count1'7 of Origin

EgJpt and Sudan••••••••••••
Pero •••••••••••••••••••••••
India and Pakistan •••••••••

China ••••••••••••••••••••••
Mexico •••••••••••••••••••••
Brasil •••••••••••••••••••••

Established Quota

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723

25,4$4
1,785,924

UniDn of Sodet

Sociali.t Republics ••••••
Argant~ •••••••••••••••••

Haiti ••••••••••••••••••••••
Ecuador ••••••••••••••••••••

!I EJtcept. Barbados, BelwKla.
?/ ~cept }figeria and Ghana.

Country of Origin

!!!ports

475,l24
5,203
237
9,333

314"
EstabJished Quota

Honduras ••••••••••••••••••••
Par~ ••••••••••••••••••••

752

Colombia ••••••••••••••••••••
Iraq ••••••••••••••••••••••••

British East Africa •••••••••

l24
195
2,240

IDiones1a ard Hetherl.ao1s
Hew Guinea ••••••••••••••••

71.388

British W. Indies •••••••••••
a1ger.1a •••••••••••••••••••••
Br1t.1ah V. Africa. ••••••••••
other. 1nc1Mi ng the U.s ....

871

2l,J21

Jamaica. Tr1n1da:l, aDi Tobqo.

1-*8"

Cotton
or !lOre
Established YearY QuoL - 45.656.lt2Q lbs.
Imports Auggt 1.

1964 -

Jan

St.aJ)l.e Length

1.-3/en

or more
1-5/32" or more ani under
1-3/an (Tangu:1.I!J)

~-Vsn

or :apre and under

1-3/-

l l &y

ilt 1965

All ec:at.1on

39.590.718
1.500. 000
4.565.6102

5,m

3.6,004

T!!JV!rts
39~590~778

9,665
2 , ~.7
~~3~3::.-_ __

Tr!eJ1-e

-2-

OOTI'ON WASTES
(In pounds)

COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
''''ASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: Provided, however, that not more than 33-1/3 percent of the quotas shall

be filled by cotton wastes other than comber wastes made from cottons of 1-3116 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
Established
TOTAL QOOTA

Country of Origin

Total Imports
: Sept. 20, 1964, to':

~_ _ _ _ _ ~~~._~...L!9:-6::.-:.S_ _

United Kingdom.....

• •••

Canada ••••••••••.•.•

France ••••••••••••.••
India and Pakistan ••••••••
Xetherlands •••••••
Switzerland •••••••••••.
Belgium ••
Japan ••••
China... • ••••••.
Eg)'pt.....
Cuba. • • •

• •••••••••••
• ••••••

Germany.
Italy..... • ••••
Other, including the U. S.

4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263

11,713
239,393

25,425

25,443
7,088

5,482,509

319,795

1,599,886

1/ Included in total imports, column 2.
Prepared in the Bureau of Customs.

D-1469

Established :
Imports
11
33-1/3% of: Sept. 20, 1964
TotalJll!9~-"!....~~..-!.Q.. .J :J!l. 11, 1965
1,441,152
75,807

43,264
22,747
14,796
12,853

TREASURY DEP AR'llmNT

HASHINGTON

n,IE2DIATE RELEASE

THURSDAY, JANUARY 14, 1965

D-1470

The Bureau of Customs has announced the following preliminary
figures showing the imports for consumption from January 1, 1964,
to December 31, 1964, inclusive, of commodities under quotas
established pursuant to the Philippine Trade Agreement Revision
Act of 1955:

2stablished Annual
Quota Quantity

Unit of
Quantity

Buttons •••••••

680,000

Gross

Cigars ••••••••

160,000,000

Number

13,579,564

Coconut oil •••

358,400,000

Pound

Quota Filled

Cordage

.......

6,000,000

Pound

Quota Filled

Tobacco

.......

5,200,000

Pound

5,184,939

Commodity

Imports as of
1964

·· December 31,
274,648

TREASURY DEPAR'IMmT

WASHINGTON

IMMTIDIATE RELEASE

THURSDAY, JANUARY 14, 1965

D-1470

The Bureau of Customs has announced the following preliminary
figures showing the imports for consumption from Januar,y 1, 1964,
to December 31, 1964, inclusive, of commodities under quotas
established pursuant to the Philippine Trade Agreement Revision
Act of 1955:

Commodity

··

···
·

Annual • Unit of : Imports as of
Quota Quantity
Quantity : December 31, 1964
•

istablish~d

Buttons •••••••

680,000

Cigars ••••••••

160,000,000

Number

13,579,564

Coconut oil •••

3J8,400,OOO

Pound

Quota Filled

Cordage •••••••

6,000,000

Pound

Quota Filled

Tobacco •••••••

5,200,000

Pound

5,184,939

Gross

274,648

-2-

Commodity

Period and Quantity

:Unit of
: Quantity

Imports as
·· Dec.
31, 196,
0

Absolute Quotas:
Eutter substitutes containing over 45% of butterfat,
and butter oil .••••••••••

Calendar Year 1964
Calendar Year 1965

Fibers of Cotton processed
but not spun ••••••••••••
Peanuts, shelled or not
shelled, blanche::i, or
otherwise prepared or
preserve::i (except peanut
butter)

................

-;'Willed January 4, 1965.

D-1471

1,200,000
1,200,000

Pound
Pound

12 mos. from
Sept. 11, 1964

1,000

Pound

12 mos. from
August 1, 1964

1,709,000

Pound

Quota Fillel
Quota Fille

Quota Fille,

TRZASURY DEP ARnmJT
Washington
D'iHill I ATE REI.EAS E

THURSDAY, JANUARY 14, 1965

D-1471

The Bureau of Customs announced. today preliminary figures on imports for cons~ption of the folloiiLng commodities from the beginning of the respective quota
periods through December 31, 1964:

Period and Quantity

Commodity

: Unit of :Import.s as oi'
: Quantity :Dec. 31, 19M

Tariff-Rate Quotas:

........

Calendar Year

1,500,000

Gallon

:;Jhole Hilk, fresh or sour •••

Calendar Year

3,000,000

Gnl10n

Cattle, 700 Ibs. or DIDre each
( 0 th er than dairy CO'lfS) •••

Oct. ~ 1964 Dec. 31, 1964

120,000

Head

12 DOS. from
Cattle less than 200 Ibs. each April 1, 1964

200,000

Head

Cream, fresh or sour

53,50 (

Fish, :resh or frozen, filleted, etc., cod, haddock,
hake, pollock, cusk, and
roselish ••••••••••••••••••

Calendar Year

24,861,670

Pound

Quo ta Fille(

'rlma Fish •••••••••••••••••••

Calendar Year

60,911,870

Pound

52,930,98'

Uhite 01' Irish potatoes:
Certified seed ••••••••••••
Other

12 mos. :rom
Sept. 15, 1964

111~, 000,000

45,000,000

Pound
Pound

Quota Fille(

:Cni ve s, for l;:s, and spoons
wi t.h stainless steel handles

IJov. 1, 1964 Oct. 31, 1965

69,000,000

Pieces

.....................

73,139,73(

41,673,92\

TREASURY DEPAR1l1E1JT
Washington

n.fi.WIATE RELEASE
THURSDAY, JANUARY 14, 1965

D-1471

The Bureau of Customs announced today pre1:iminary figures on imports for conof the fo11owinp, commodities from the beginning of the respective quota
periods through December 31, 1964:
s~tion

Commodity
Tariff-Hate

Period and Quantity

: Unit of :Import.s as of
Quantity :Dec. 31, 1964

Quota~.:

Cream, fresh Or sour ••••••••

Calcnd.1.i' Yoar

1,500,000

Gallon

1,009,502

;Vhole l1i1k, fresh or sour •••

Cal end aJ.' Year

3,000,000

G.iLlon

Cattlr.::, 700 Ibs. or more each
(other than dairy cows) •••

Oct. ~ 1964 Doc. 31, 1904

120,000

Head

23,415

Cattle less than 200 Ibs. each

12 ::103. {'rom
April 1, 1964

200,000

Head

53,506

Fish, l'resh or ['rozen, .;:'illeted, etc., cod, haddock,
hake, pollod:, cu s:":: , and
ro5e~ish ••••••••••••••••••

24,861,670

Pound

Quota Filled

f:iJ,911,870

Pound

52,930,989
73,139,730
Quo ta Filled

Tuna Fish •••••••••••••••••••

Calendar Year

White 01' Irish potatoes:
Certified seed ••••••••••••
Other •••••••••••••••••••••

12 mos. from
Sept. 1), 1964

114,000,000
45,000,000

Pound
Pound

Knives, forks, and spoons
with stainless steel handles

Nov. 1, 1964 Oct. 31, 1965

69,000,000

Pieces

41,673,920

-,2-

Commodity

Period and Quantity

:Unit of • Imports as of
: Quantity : Dec. 31, 1964

Absolute Quotas:
Butter substitutes containing over 45% of butterfat,
and butter oil •••••••••••

Calenriar Year 1964 1,200,000
Caleniar YE'ar 1965 1,200,000

Pound
Pound

Fibers of Cotton process~d
but not spun ••••••••••••

12 mos. from
Sept. 11, 1964

1,000

Pound.

Peanuts, shelled or not
shelled, b1anchej, or
otherwi3e prepared or
preserved (except peanut
butter) ••••••••••••••••

1..2 roos. from
Augu::; t 1, 1964

1,709,000

Pound

*Filled January 4, 1965.

D-1471

Quota Filled
Quota Filled

Quota Filled

- 3 -

and exchange tenders will receive equal treatment.

Cash adjustments will be made

for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale
or other disposition of the bills, does not have any exemption, as such, and loss
tram the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code of 1954.

The bills are subject

For purposes of taxation the amount of discount at which

Treasury bills are originally sold by the United states is considered to be interest.

Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954

Accordingly, the owner

of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such
bills,. whether on original issue or on subsequent purchase, and the amount actuall;
received either upon sale or redemption at maturity during the taxable year tor
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and govern the conditions of their.issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 -

decimals, e. g., 99.925.

Fractions may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will
be supplied by Federal Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of customers
provided the names of the customers are set forth in such tenders.

others than

banking institutions will not be permitted to submit tenders except for their
own account.

Tenders will be received without deposit from incorporated banks

and trust companies and from responsible and recognized dealers in investment
securities.

T~nders

from others must be accompanied by payment of 2 percent of

the face amount of Treasury bills applied for, unless the tenders are accompanie(
by an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made
by the Treasury Department of the amount and price range of accepted bids.

ThOS!

submitting tenders will be advised of the acceptance or rejection thereof.

The

Secretary of the Treasury expressly reserves the right to accept or reject any
or all tenders, in whole or in part, and his action in any such respect shall
be final.

Subject to these reservations, noncompetitive tenders for each issue

for $200,000 or less without stated price from anyone bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids
for the respective issues.

Settlement for accepted tenders in accordance with

the bids must be made or completed at the Federal Reserve Banks on January 21,_
1965

, in cash or other immediately available fUnds or in a like face

amount of Treasury bills maturing _--...:.J.::an::.::.::u.:;:ar:::..YL....:2::..:1=-i~~1~9:.;;6~5~_ _ _ _ _ _ _ •

Cash

TREASURY DEPARTMENT

Washington
FOR IMMEDIATE RELEASE,

-~
TREASURY'S WEEKLY BILL OFFERING

January 13, 1965

The Treasury Department, by this public notice, invites tenders for two seri
of Treasury bills to the aggregate amount of $ 2,200,000,000, or thereabouts, fa
-~

cash and in exchange for Treasury bills

mat~ring

January 21, 1965

,in the amou

$JX
of $

2.102~,OOO

, as follows:

91 -day bills (to maturity date) to be issued January 21, 1965

in the amount of

$~20~,000

tt'9X

, or thereabouts, represent-

ing an additional amount of bills dated
and to mature April
amount of $

2~1965

1~9,OOO,

oc~obe~

1964

, originally issued in the

the additional and original bills

to be freely interchangeable~
182 -day bills, for,$~OOO~OOO , or thereabouts, to be dated

4fi3

JanU~1965

,and to mature July 22, 1965

tDJX

•

The bills of both series will be issued on a discount basis under competit1v
and noncompetitive bidding as hereinafter provided, and at maturity their face
amount. will be payable without interest.

They will be issued in bearer form only

and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour,

on~-thirty

p.m., Eastern Standard time,

Monday, January 18, 1965

xxtWJXX
E&ch

Tenders will not be received at the Treasury Department, Washington.

tender

must be for an even multiple of $1,000, and in the case of competitive tenders tb
price offered must be expressed on the basis of 100, with not more than three

TREASURY DEPARTMENT

January 13, 1965
FOR IMMED IA TE RELEASE

TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
~2,200,OOO,000,or thereabouts, for cash and in exchange for
Treasury bills maturing January 21,1965, in the amount of
~2 ,102,744,000, as follows:
91 -day bills (to maturity date) to be issued January 21, 1965,
1n the amount of $1,200,000,000, or thereabouts, representing an
additional amount of bills dated Oc tober 22,1964, and to
mature April 22,1965,
originally issued in the amount of
$1,OOO,76~,OOO,the additional and original bills to be freely
1nte~hangeable •

182 -day bills, for $1,000,000,000, or thereabouts, to be dated
January 21,1965,
and to mature July 22, 1965.
The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided, and at
maturity their face amount will be payable without interest. They
will be issued in bearer form only, and in denominations of $1,000,
$5,000, $lO,OOO~ $50,000, $100,000, $500,000 and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty p.m.,
Eastern Standard
time, Monday, January 18, 1965.
Tenders will not be
received at the Treasury De~artment, Washington. Each tender must
be for an even multiple of $1,000, and in the case of competitive
tenders the price offered must be expressed on the basis of 100,
with not more than three decimals, e. g., 99.925. Fractions may not
be used. It is urged that tenders be made on the printed forms and
forwarded in the special envelopes which will be supplied by Federal
Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of
customers provided the names of the customers are set forth in such
tenders. Others than banking institutions will not be permitted to
8ubmit tenders except for their own account. Tenders will be received
Without deposit from incorporated banks and trust companies and from
~sponS1b1e and recognized dealers in investment securities. Tenders
rom others must be accompanied by payment of 2 percent of the face
lIftount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
Or true t company.

D-1472

- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Department of the
amount and price range of accepted bids. Those submitting tenders
will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders, in whole or in part, and his action in
any such respect shall be final.
Subject to these reservations,
noncompetitive tenders for each issue for $200,000 or less without
stated price from anyone bidder will he accepted in full at the
average price (in three decimals) of accepted competitive bids
for the respective issues. Settlement for accepted tenders in
accordance with the bids must be made or completed at the Federal
Reserve Banks on January 21, 1965, in cash or other immediately
available funds or in a like face amount of Treasury bills
maturing January 21, 1965. Cash and pxchange tenders will
receive equal treatment. Cash adjust l11(.'nts will be made for
differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.

The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject to
estate, inheritance, gift or other excise taxes, whether Federal or
State, but are exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to be
interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills are
sold, redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury DApartment Circular No. 418 (current revision) and this
notice prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained from
any Pederal Reserve Bank or Branch.
000

TREASURY ANNOUNCES INCREASE IN WEEKLY BILL OFFERING
The Treasury announced today that in th. coming week.
it expects to increase the amount of regular weekly Treasury
bills to be auctioned by $100 million over the $2.1 billion
maturing amounts.

The first such increase will be in the

bills to be auctioned on MOnday, January 18th.
The Treasury will be offering $1.2 billion of three-month
bills and $1.0 billion of six-month bilil.

The larger

offerings will be helpful in counteracting a technical shortage
of shorter-term bills in the market, in maintaining international
short-term interest rate relationships, and in covering .cae
of the Treasury's remaining first-quarter cash n •• ds.

TREASURY DEPARTMENT

January 13, 1965
FOR IMMEDIATE RELEASE

TREASURY ANNOUNCES INCREASE IN
WEEKLY BILL OFFERING
Th2 Treasury announced today that in the coming weeks
it expects to increase the amount of regular weekly
Treasury bills to be auctioned by $100 million over the

$2.1 billion maturing amounts.

The first such increase

will be in the bills to be auctioned on Monday, January 18th.
The Treasury will be offering $1.2 billion of threemonth bills and $1.0 billion of six-month bills.

The

larger offerings will be helpful in counteracting a technical
shortage of shorter-term bills in the market, in maintaining
international short-term interest rate relationships, and in
covering some of the Treasury's remaining first-quarter cash
needs.

000

D-1473

FOR IMMEDIATE RELEASE

January 15, 1965

PAYMENT OF FINAL INTEREST ON REGISTERED TREASURY SECURITIES
on Fehruary 15th, the Treasury said today.
The revised regulations were published on December 30,
1964, and will speed up payments of final interest and result
in a uniform method covering periodic interest payments of
registered Treasury securities.
The . _ rLE?,~.~~;rL_~ £.~ay called attention to a recent change in
its regulations covering~
final
interest on its registered s~~~ e
up payments of fin~li·ntt~"'rest and result in a uniform
covering periodic · interest payments of registered Treasury
._ ~. securities.
I'· ..

Heretofore the final interest payment on these securities
! has been paid with the principal instead of by separate check
J as was the case with prior interest payments. The final inr terest installment will be paid under the new regulations by
I Treasury check in the same manner as all earlier interest

h I' i ~~:.::~:~e~~:~ h~~e ~~::~ ~:~~~, _t~: t A-~~',. ~~ ,will be paid on the

•

TREASURY DEPARTMENT
WASHINGTON. D.C.

..•
:
~.
• .

January 15, 1965

FOR IMMEDIATE RELEASE
PAYMENT OF FINAL INTEREST ON
REGISTERED TREASURY SECURITIES
A change in the method of making final interest payments
on all the Treasury's registered marketable securities will
become effective for the first time on the 2-5/8% bonds remaining
for redemption on February 15th, the Treasury said today.
The revised regulations were published on December 30,
1964, and will speed up payments o[ final interest and
result in a uniform method covering periodic interest payments
of registered Treasury securities.
Heretofore the final interest payment on these
securities has been paid with the principal instead of by
separate check as was the case with prior interest payments.
The final interest installment will be paid under the new
regulations by Treasury check in the same manner as all
earlier interest installments have been paid: that is, it
will be paid on the maturity date by check payable to the
holder of record on the Department's books at the close of
business one full month prior tll that date.
This means that purchasers of registered securities
during the month preceding maturity will no longer receive
the final interest payment. Accordingly, purchases during
the month preceding maturity will involve adjustments on
account of accrued interest just as adjustments have been
necessary on purchases of registered securities during the
final month of any other interest period.

000

D-1474

ron

l.E.V:~A,;E;

rU4'S~,

r•• :. :JD,~i)PAP&td

January 19, 1965
)f

SijLfS IJP' TRKASlJRY'S v.. ·"&''(LY 8ILL or;·E.R.INQ

fhe "freaaury DepartNot annouaoed lut. even1ng t.hat the tenders tor t,'Wo Hr1ea o.
I'reuury i,;Ula, one series t.o be aD addit,1onal 1 ••ue or the bUls dac.ed October 22, l~
and tl •• ot.her series to be dated January 21, 1965, .hiGh 1IJII1"e offet"fld ':)0 JanuU')' 13
wre opened at t.he Federal Resena **a on JMUAl7 18. tenc:ler~ wre ~.,nvlt.ed far
$1,200,000,000, or tt.reabout.s, ot 91-da,y billa and tor $1.000'()))':'>~J or th.re~t.I
of 182-day bUlB. rhe details of \he two aeries are .. tollows:
RA.~.~}E ')~" t.G~?'f~:'D
9l-da¥ Trea8ury billa
•
l82-dayi'~.s·.lry bUla
c:)tl.P?'r"T!V' ~.rD3:
matur1!!1 A*'1?; 22. l~
I
_tu.z:in;; July 22, 1;6,

pprox.

Annual date

Price

99.0)8

).806%

r,Qv·;9.031

).8)):1t
).621i

Hip'h

Av.ras~<,

dy.

:;;;.0)4

Approx.~lq\d,
Annual Rate

Price

98.0:)0

J.956~

97.9~1

3.~62r.,

). ~60";

97.996

6S;:t of tLe fIr:-') nt of '~'l-day bill. bid tor at the low pr1ce vu &cce)~t.l'ltd
9'( of' the amount. of 182-day billa bid tor at. the low price wu .g,ceapu:-d

District

lG.ton

York
Philadelphia
Cleveland
!\:ew

nietmlond
Atlant~

Chicago
Jt. Louis
;<inneapolie
)Cansy

City

Dallas
'::an

1-"'rancisco

Ai,plied For
...i' IS. 349 CXlO

1,500,9::>6,000
2f; ,160,0)0

26,479, .)00

Ii'

15,.349.0.)0

791,456,000
16,l60,cxx>
26,479,000

12,274,000

12,214,00;

42,D16,0\X)

31,1)9,000

27),254,000
.:r ,619.000
22, ·:'SE', 000
2'"'I, '-"64 I'r)()()

27, 6S'9, 000

54, (.;91,000
.IT

l'O'rAl,;:~

Aooe£tecl

$2,099,429,)()()

1)2,879,000
32,919,000
le,SS8,QUO

•
I
I
I
I
I
I

••

•

Appl.1ed for

)6,6t~o,·.)OO

1,757,e:, jl, Jf)J
16,.1.1
r)'
,'JQ ,v-,;J

6:;, l1.;.6,')',;.)

Accepted
I

".l'
"

2~,640,cx

70)1,994,0(
4,690,0(

JJ,146,0<

11 ,}27 ,iJ..,J

4,667,0.'.

20, ;18,t)J:J
341 ,."J0,.,
.~ -{
).,~'" ')

11,Bh),Q(
11i,::'84,Oc.
12,064,CX

14,(-(~,l,j),)

r , <..-{, ,OJU

~,12i."·)(

26,264,000

16, 6 ;;c,,'
·-r ::0)

22,)49,000

16, :j()6"j.)O

6,6,6,rx

1&&,:,)02,00)

6"1,895,0<

65,116,000

1.1, 52J,()(

$1,200,fh2,oao!l '~2,474.'1813')lJ);"1, J'Jl,·)26,'y'

Includee;;260,2)?,.f)Q l\OftO~t.'it.l. . t-endere eeoept,ed at toe avera~~e ;'J,10. ot /9.0~
Tnclude. "'98,,0)0, JOO noneOllpet,tt1ve tendeN &C0epted at, the av€ra!;e ;. .rlee at )17.99t
JIl a coup:>n lS8ue ot the aMe lengt,b and ten- the _ _ DOUflt 1 nvested, tt. retum c
thet'Je hUl. would pravlde yields or l.91~, for the 91-da¥ bills, and l, .10';, r·". tb4
182-day billa. ;nterest rate. an billa are Quoted in tel"tl8 vf bank discount vt\h
tt.. return .related t;) t.r.e race aount or the b'~ll. p8¥&ble at 15~tu.ritj rather tba
the ...~t. inWl.ted and their length 1n actual. 8,.•0.1' or clays related to a )l...'l-daJ
lear. ;-n eontrut, yields on certifioate., notes, and bCH'ld. are eo vuted in ~
or interest on t.he uount tnve.ted, and relate t.he ntJ!ltber of da.../s r@fl'taininc 1.a aD
interest }"!a}1Mnt ,'~ri:)d t., t,h. actual n'lllber or cla7. in the ~;)r104, \,,1 th s_iannual
cc:ap~unding if' .ore tLan ooe ooupon p~r1od 18 involved.

TREASURY DEPARTMENT

roR RELEASE A. M• NEWSPAPERS

Tuesday, January 19, 1965

RESULTS OF TREASUHY' S W~~EKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two series of
~easury bills, one series to be an additional issue of the bills dated October 22, 1964,
~dthe other series to be dated January 21,1965, which were offered on January 13
were opened at the Federal Reserve Banks on January 18. Tenders were invited for
$1,200,000,000, or thereabouts, of 9l-day bills and for $1,000,000,000, or thereabouts,
of l62-day bills. The details of the two series are as follows:
RANGE OF ACCEPTED
91-day Treasury bills
182-day Treasury bills
COMPETITIVE BIDS:
maturing April 22, 1965
maturing July 22, 1965
Approx. Equiv.
Approx. Equiv.
Price
Price
Annual Rate
Annual ~ate
High
99.038
3.806%
98.000
3.956%
Low
99.031
3.833%
97 .997
3.962t
Average
99.034
3.821~ !I
97.998
3.960~ !I
65% of the amount of 9l-day bills hid for at the low price was accepted
9% of

the amount of 182-day bills bid for at t.he low price was accepted

TorAL TENDERS APPLIED FJR AND ACCEPTED BY FEDERAL m:SSRVE DISTRICTS:

District
Boston
New York
Philadelphia
Cleveland
iichmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City

Applied For
$ 36,640,000
1,757,891,000
16,461,000
63,746,000
17,027,000
20,918,000
341,336,000
14,864,000
[J ,67Y, 000
16,858,000
16,566,000
164,002,000

Dallas
San Francisco

Applied For
$ 15,349,000
1,500,906,000
2tl,160,000
26,419,000
12,214,000
42,076,000
273,254,000
38,619,000
22,658,000
27,264,000
27,699,000
84,691,000

Accepted
$ 15,3h9,OOO
791,4S6,OOO
16,160,000
26,479,000
12,214,oou
37,139,000
132,879,000
32,919,000
18,858,000
26,264,000
22,349,000
68,116,000

TOTALS

$2,099,429,000

$1,200,242,000 ~/ $2,474,988,000

Accepted
21,640,000
$
701,994,000
4,690,000
33,746,000
4,667,000
11,843,OUO
119,~84,01j()

12,064,000
4,724,000
11,523,000
6,656,000
67,895,000
$1,001,026,000

InclUdes $260,232,000 noncompetitive tenrl~rs accepted at the average price of )9.034
Includes $98,030,000 noncompetitive tenders accepted at the averaGe price of 97.998
On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 3.9l~, for the 9l-day bills, and 4.10%, for the
182-day bills. Interest rates on bills are quoted in terms of bank discount with
the return related to the face amount of the bills payable at maturity rather than
the amount invested and their length in actual number of days related to a 360-day
year. In contrast, yields on certificates, notes, and bonds are cOlllputed in terms
ot interest on the amount invested, and relate the number of days remaining in an
interest payment period to the actual number of days in the perioc;i, with semiannual
c~pounding if more than one coupon period is involved.

D-1475

£/

- 3 The Bureau of Accounts is responsible for a variety of central

financial services concerned with accounting for and disbursing of

federal funds and for reporting these and other financial

activities of the Federal government, including the "Annual Report

of the Secretary of the Treasury on the State of the Finances," and

the "Monthly Statement of Receipts and Expenditures."

000

- 2 -

program.

Mr. Sokol has been the recipient of the Department of the

Army's Meritorious Civilian Service Award and the Treasury
Department's Meritorious Service and Exceptional Service Awards.
Mr. Sokol is a native of New York City and a graduate of the
College of the City of New York.

He married the former Evelyn Gold.

They have one daughter, and reside at 7777 Maple Avenue, Takoma Park
Maryland.
In December, 1964

Treasury Secretary Douglas Dillon presented

the Treasury's Exceptiohal Service Award to Commissioner Gearhart
for his "outstanding

c~ntributions"

of the Treasury Depar~ment.

to the total management effort

The Secre9ary praised Commissioner

Gearhart for his "tofl Lnanagement follC#V-through, perseverance and
day-to-day leadershiP."

DRAFT RELEASE - RCC - 1/18-65
FOR IMMEDIATE RELEASE
SIDNEY S. SOKOL NAMED
COMMISSIONER OF ACCOUNTS
The Treasury Department announced today that Mr. Sidney S.
Sokol will succeed Mr. Harold R. Gearhart as Commissioner of
Accounts of the Treasury.

Mr. Gearhart, who has been in his present

position since January, 1961, will retire on January 29, after more
than 31 years of service for the United States Government.
Mr. Sokol has been Assistant Commissioner of Accounts since
January, 1961, and has been in the Federal service since 1935,
all with the Treasury Department except for four years with the

1 War Department, Army Service Forces.-: He has been closely associated
~

with the Joint Financial Management Improvement Program, composed
of representatives of the Treasury, Bureau of the Budg2t and
General Accounting Office, and for the last two years has served

as the Treasury representative on the steering committee for that

TREASURY DEPARTMENT
=

January 18, 1965
FOR IMMEDIATE RELEASE

SIDNEY S. SOKOL NAMED
COMMISSIONER OF ACCOUNTS
The Treasury Department announced today that Mr. Sidney S.
Sokol will succeed Mr. Harold R. Gearhart as Commissioner of
Accounts of the Treasury. Mr. Gearhart, who has been in his present
position since January, 1961, will retire on January 29, after more
than 31 years of service for the United States Government.
Mr. Sokol has been Assistant Commissioner of Accounts since
January, 1961, and has been in the Federal service since 1935,
all with the Treasury Department except for four years with the
U. S. Army.
He has been closely associated with the Joint
Financial Management Improvement Program, composed of
representatives of the Treasury, Bureau of the Budget and General
Accounting Office, and for the last two years has served as the
Treasury representative on the steering committee for that
program. Mr. Sokol has been the recipient of the Department of the
Army's Meritorious Civilian Service Award and the Treasury
Department's Meritorious Service and Exceptional Service Awards.
Mr. Sokol is a native of New York City and a graduate of the
College of the City of New York. He married the former Evelyn Gold.
They have one daughter, and reside at 7777 Maple Avenue,
Takoma Park, Mary land.
The Bureau of Accounts is responsible for a variety of central
financial services concerned with accounting for and disbursing of
federal funds and for reporting these and other financial
activities of the Federal Government, including the "Annual Report
of the Secretary of the Trl!asury on the State of the Finances,"
and the "Monthly Statement of Receipts and Expenditures."

000

D-1476

- 2 -

fufore n fillEll

d(~termtnut.lon

wnc reachcu. with respect to the

question presented, the Government of

CuIIL.t.cJ.a

wnentled Cunad,la.n Order-

in-Council P.C. 1963-1/l,41~ to provide th·t Canadian duty remiss10Da
w11l not be pa1d as a result of any exportat1on from Canada after
Junuo.ry l'(, 196).
It :1s hereby
1544 does not

no~

detel~ined

that Canad1a.n Order-in-Counc1l P.C.

1963-1/

provide for the payment or bestowal, directly or

indirectly, of any bounty or grunt upon the manufacture or product1on
or export of any article which is imported into the United States.

COmmissioner of Customs

Approved:

A~si6tant

Secretary of the Treaaury

"
•

"
<

...

....... .

..1 .. 1. ) . ,

- 2 The Treasury's conclusion

K~~

was reached after being

advised that the Government of Canada had amended its Orderin-Council to provide that Canadian duty remissions will not be
paid as a result of any exportation from Canada after
January 17, 1965.

The amendment of the Canadian order followed

the agreement entered into by the United States and Canada to
eliminate tariffs on new automobiles and auto parts signed last
Saturday by President Johnson and Prime Minister Lester Pearson
at the LBJ Ranch in Texas o
Notice of investigation into the subsidy question raised
by the Canadian Remission Plan had been published by the
Treasury's Bureau of Customs on June 3, 19640
The text of the Treasury's notice of determination, which
- _

....

llli·......,~·

~A;f '41* 91 4 . ' ../"
is being published in the Federal Register, is

£al1ows:

D R AFT - 1/18/65
FOR IMMEDIATE RELEASE
CANADA HALTS REMISSION OF IMPORT DUTIES
Th= Treasury Department today announced that it had
determined that the Canadian Order-in-Council of October 22, 1963
which provided for remission of customs duties on motor vehicles
and motor vehicle parts imported from the United States, does
not now provide a subsidy to Canadian companieso
The beneficiaries of the Canadian order have been
automobile manufacturers in Canada who have increased their
exports, and in consequence have been entitled to the remissions.
If the Treasury had determined that the Canadian order
bestowed a grant or bounty within the meaning of U. S. Customs
law, countervailing duties would have been imposed by the
United States upon Canadian imports.

Under the law, counter-

vailing duties cannot be apF-ied retroactively.

TREASURY DEPARTMENT

January 19, 1965

FOR IMMEDIATE RELEASE
CANADA HALTS REMISSION OF IMPORT DUTIES
The Treasury Department today announced that it had
determined that the Canadian Order-in-Council of October 22, 1963,
which provided for remission of customs duties on motor vehicles
and motor vehicle parts imported from the United States, does not
now provide a subsidy to Canadian companies.
The beneficiaries of the Canadian order have been automobile
manufacturers in Canada who have increased their exports, and in
consequence have been entitled to the remissions.
If the Treasury had determined that the Canadian order
bestowed a grant or bounty within the meaning of U. S. Customs
law, countervailing duties would have been imposed by the United
States upon Canadian imports. Under the law, countervailing
duties cannot be applied retroactively.
The Treasury's conclusion was reached after being advised
that the Government of Canada had amended its Order-in-Council
to provide that Canadian duty remissions will not be paid as a
result of any exportation from Canada after January 17, 1965.
The amendment of the Canadian order followed the agreement
entered into by the United States and Canada to eliminate tariffs
on new automobiles and auto parts signed last Saturday by
President Johnson and Prime Minister Lester Pearson at the LBJ
Ranch in Texas.
Notice of investigation into the subsidy question raised by
the Canadian Remission Plan had been published by the Treasury's
Bureau of Customs on June 3, 1964.
The text of the Treasury's notice of determination, which is
being published in the Federal Register, is attached.

D-1477

DEPARTMENT OF THE TREASURY
Bureau of Customs
MOTOR VEHICLES AND MOTOR
PARTS FROM CANADA
Determination with Respect to
Suspected Bounty or Grant
A notice was published in the Federal Register of June 3, 1964
(~ F.R. 7249) that the Bureau of Customs had received information
that Canada had adopted measures, which became effective on November 1,
1963, under which amounts measured by the duties paid on imports into
Canada of "motor vehicles and motor vehicle parts" (as described in
Canadian Order-in-Council P.C. 1963--1/1544 of October 22, 1963)were
to be paid directly or indirectly upon exports to any country of
"motor vehicles and motor vehicle parts." Such amounts were to be
paid in connection with total exports which exceeded total exports
~de during the 12 months ending October 31, 1962.
The notice afforded an opportunity for interested persons to
present written views on the question whether the foregoing Canadian
measures constituted the payment or bestowal of a bounty or grant
within the meaning of section 303, Tariff Act of 1930 (19 U.S.C. 1303),
upon exports of motor vehicles and motor vehicle parts from Canada.
A large number of views and arguments were received in response to
the notice.
Before a final determination was reached with respect to the
question presented, the Government of Canada amended Canadian
Order-in-Council P.C. 1963-1/1544 to provide that Canadian duty
remissions will not be paid as a result of any exportation from
Canada after January 17, 1965.
It was therefore determined that Canadian Order-in-Council
P.C. 1963-1/1544 does not now provide for the payment or bes towal,
directly or indirectly, of any bounty or grant upon the manufacture
~ production or export of any article which is imported into the
United Sta te s •

Commissioner of Customs
Approved:

Ass is tan t Secre tary of the Treasury

- 3 -

and exchange tenders will receive equal. treatment.

Cash adjustments will be made

trom the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue code of 1954.

The bills are subject

For purposes of taxation the amount of discount at which

Treasury bills are originally sold by the United states is considered to be interest.

Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954

Accordingly, the owner

of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such
bills " whether on original issue or on subsequent purchase, and the amount actua1l;
received either upon sale or redemption at maturity during the taxable year tor
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and govern the conditions of their.issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 -

decimals, e. g., 99.925.

Fractions may not be used.

It is urged that tenders

others than

banking institutions will not be permitted to submit tenders except for their
own account.

Tenders will be received without deposit from incorporated banks

and trust companies and from responsible and recognized dealers in investment
securities.

Tenders from others must be accompanied by payment of 2 percent of

the face amount of Treasury bills applied for, unless the tenders are accompanied
by an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made
by the Treasury Department of the amount and price range of accepted bids.

ThOSE

submitting tenders will be advised of the acceptance or rejection thereof.

The

Secretary of the Treasury expressly reserves the right to accept or reject any
or all tenders, in whole or in part, and his action in any such respect shall
be final.

Subject to these reservations, noncompetitive tenders for each issue

for $200,000 or less without stated price from anyone bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids
for the re_pective issues.

Settlement for accepted tenders in accordance with

the bids must be made or completed at the Federal Reserve Banks on JanUWaf-8 1
1965

, in cash or other immediately available fUnds or in a like face

amount of Treasury bills maturing _ _-=-J=an::.u=a=r.y:...L...-.:2::.;8~W~~1;,9~65~_______ •

Cash

TREASURY DEPARTMENT
Washington
January 19,

FOR IMMEDIATE RELEASE,

19~

TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders for two serie
of Treasury bills to the aggregate amount of $ 2,200,000,000 , or thereabouts, for

-W

cash and in exchange for Treasury bills mat'llring

ttt'

of $ 2,102

January 28, 1965

, in the amoun

.f5f

000 , as follows:

91-day bills (to maturity date) to be issued

January 28, 1965

""=tSt~

in the amount of $ 1,200

OOO

, or thereabouts, represent-

ing an additional amount of bills dated oct.ober
and to mature

April

~1965

1964

' originally issued in the

amount of $1,002,754,000 , the additional and original bills

(10)
to be freely interchangeable.
182 -day bills, for $ 1,000~000 , or thereabouts, to be dated

(11)

Janu~

1965

, and to mature

July 29, 1965

fl4+

•

The bills of both series will be issued on a discount basis under competitive
and noncompetitive bidding as hereinaf'ter provided, and at maturity their face
amount will be payable without interest.

They will be issued in bearer form only,

and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and
$1,000,000 (maturity value).
!enders will be received at Federal Reserve Banks and Branches up to the
clOSing hour,

on~-thirty

p.m., Eastern Standard time, Monday, JanUflsf5, 1965

!enders will not be received at the Treasury Department, Washington.

Each tender

must be for an even multiple of $1,000, and in the case of competitive tenders thE
price offered must be expressed on the basis of 100, with not more than three

TREASURY DEPARTMENT

January
FOR IMMEDIATE RELEASE

TREASURY'S WEEKLY RILL OFFERING
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$2,200,000,000,or thereabouts, for cash and in exchange for
Treasury bills maturin,?; January 28,1 c)6 ') ,
in the amount of
$ 2,102,144,000, as follows:
9~day bills (to maturity date) to be issued January 28, 1965,
1n the amount of $1,200,000,000, or thereabouts, representing an
additional amount of bills dated Oc tober 29,1964, and to
mature April 29, 1965, originally issued in the amount of
$1,002,754~000,the additional and original bills to be freely
interchangeable.
18~day bills, for $1,000,000,000, or thereabouts, to be dated
January 28, 1965, and to mature July 29, 1965.

The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter proyided, and at
maturity their face amount will be payable without interest. They
will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $50,000. $100,000, $~OO,OOO and $1,000,000
(maturi ty value).
Tenders will be received at Federal Reserve Banks and Branches
to the closing hour, one-thirty p.m., Eastern Standard
time, Monday, January 25,1965.
Tenders will not be
received at the Treasury De~artment, Washington. Each tender must
be for an even multiple of $1,000, and in the case of competitive
tenders the price offered must be expressed on the basis of 100,
with not more than three decimals, e. g., 99.925. Fractions may not
be used. It is urged that tenders be made en the printed forms and
forwarded in the special envelopes which will be supplied by Federal
Reserve Banks or Branches on application therefor.
up

Banking institutions generally may submit tenders for account of
customers provided the names of the customers are set forth in such
tenders. Others than banking institutions will not be permitted to
submit tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
D-1478

- 2 Immediately after the closing hour, tenders will be opened at
the Federal Res~rve Banks and Branches, following which public
announcement will be made by the Treasury Department of the
amount and price range of accepted bids. Those submitting tenders
will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders, in whole or in part, and his action in
any such respect shall be final. Subject t'o these reservations,
noncompetitive tenders for each issue for $200,000 or less without
stated price from anyone bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids
for the respective issues. Settlement for accepted tenders in
accordance with the bids must be made or completed at the Federal
Reserve Banks on January 28, 1965, in cash or other immediately
available funds or in a like face amount of Treasury bills
maturing January 28, 1965.
Cash and exchange tenders will
receive equal treatment. Cash adjustments will be made. for
differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and lOBS from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject to
estate, inheritance, gift or other excise taxes, whether Federal or
State, but are exempt from all taxation now or hereafter imposed on
the prinCipal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to be
interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills are
sold, redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this
notice prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained from
any Federal Reserve Bank or Branch.
000

TREASURY DEPARTMENT
:::

January 19, 1965
FOR IMMEDIATE RELEASE
TREASURY REPORTS ON TAX AND LOAN ACCOUNTS
The Treasury today released a report setting forth
the results of its study of Treasury Tax and Loan
Accounts made at the request of the Senate Committee on
Finance.
The report explains the reasons why the Tax and
Loan Account system enables the Secretary of the Treasury
to carry out two of his responsibilities: assuring that
Treasury operations do not disrupt the money market, and
assuring an effective distribution system for Government
securities. The report then estimates the value to banks
of the balances maintained in Tax and Loan Accounts during
calendar year 1963, and the costs of services performed
by the banks through which the Government recoups the
value of the balances.
Copies of the report are available from the Fiscal
Service of the Treasury Department, Room 3458.

000

D-1479

nl'('

eXClnp~ :1'1'01.1

L1Iereo1' hy
] OCtl, 1.

{U1Y

aLL t2...'{aLion now

01'

hereafter :imposed on the princ:ipal or interent

SLal.e, or f:l.ny of the po:.:;::;esslons of the Un:tted States, or by any

tnxJnr: auLhor.tty.

For purJlOGeD of tnxat.:icl) Lhe runowrt. of discount at which

'l'rem:ury ldl1s nrc originll.lly sold by the United States is considered to be inLercst.

Under SectionG 4:Jtl (b) and 1221 (5) of the Internal Revenue Code of 1954-

the runount of discount at lThich bills j.ssued hereunder are sold is not considered

aecruc until such bill:::; nrc Gold, redeemed or otherwise disposed of, and such

bills m'e' e);chvhJ from conr;:iciernUon

[U;

c:',p i tal

n..;~~cts.

hccordingly, the owner

o:\.' 'l')'enmu'Y b:U.lc (other U 1:'.Jl lll·(~irwurt.mcc companies) issued hereunder need include 1n his income tax retunl only tlle difference bet.reen the price paid for sud
bi J.ls, uhcthcJ:' on oricinn1 l:;:;u(' or on

~;llbGe(]uent

ptU'chase, and the amount actual]

rece.i.ved either upon sale or redemption at maturity durinG the tfL,{o,ble year for
",llicit the return is mooe,

ordino,ry c;:l.in or loss.

'l'l'Cn.8Ury Department Circular No. 4:18 (current revision) and this notice, pre-

scrj.be the terms 01' the Treasury biJ.ls :md Govern the conditions of their issue.
Copies

0:('

the circu.lar may be obtained from any Federal Reserve Bank or Branch.

- 2 -

banking institutions wIll not be perm.itLcd to submit tenders except for their own
ncc01mt.

Tenders ,viII be received

Yr.j

thout deposit from

incorporat~d

banks and

trust companies and from responsible end recognized dealers in investment securities.
Tenders from others must be accompanied by poyment of 2 percent of the face amount
Of Treasury bills applied for, unless the tenders are accompanied by en express
~o.ranty

of payment by an incorporated banle or trust company.

Irnmediat~ly

after the clOSing hour, tenders will be opened at the Federal Re ..

serve Danks and Branches, follmfinr; "hleh public announcement will be made by the
Treasury Department of the omount and. price range of accepted bids.
ting tenders l-rlll be advised of the acceptance or rejec Lion thereof.

'l'hose GubmltThe Secretary

of the 'l'reasury e;...-presoly reserves the riGht to accept or reject any or all tenders,
in lThole or in part, and his action in any [mch respect shall be final.

to these reservations, noncompeti ti ve tenders for

2~O

Subject

or less without

stated price from anyone bidder .rill be accepted in full at the average price (in
three decimals) of accepted competitive bids.

Settlement. for accepted tenders in

accordance .rith the bids munt be made or completed at the Federal Reserve Bank on
Feb~ 1965

,in cash or other immediately available funds or in a like

face amount of Treasury billc maturinr;
tenders "rill receive equal treatment.

January 31, 1965

Cash and exchange

Cash adjustments will be made for differ-

ences betvTeen the par value of maturine bills accepted in exchange and the issue
pr:lce of the neY' bills.
The income derived from Treasury bills, vmether interest or gain from the sale
or other disposition of the bills, does not have any exemption, as such, and loss
frolil the sale or other disposition of Treasury bills does not have any special
trentment, as such, under the Internal Revenue Code of 1954.

The bills are subject

to estate, inheritance, gift or other excise taxes, .lhether Federal or state, but

TREASURY DEPARTMENT
Washington

January 19, 1965
TREASURY REFUNDS ONE-YEAR BILLS

The Treasury Department, by this public notice, invites tenders for

$ 1,000,000,000

,or thereabouts, of

365 -day Treasury bills, for cash and
~
~in exchange for Treasury bills maturing
January_ 1965
, in the amount

of $ 1.000• • 0QO

' to be issued on a discount basis under competitive and

noncompetitive bidding as hereinafter provided.

~be

bills of this series will be

January 31, 1965
January 31, 1966 ,"Then
, and will mature
~
the face amount will be payable without interest. They will be issued in bearer

dated

-.c-

form only, and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000,
$500,000 and $1,000,000 (maturity value).

Tenders will be received at Federal Reserve. Banks and Branches up to the
closing hour, one-thirty p.m., Eastern Standard time, Tuesday, January 26, 1965.

5eMX

Tenders "nIl not be received at the Treasury Department, Washington.
must be for an even multiple of

~1,000,

Each tendel

and in the case of competitive tenders tt

price offered must be expressed on the basis of 100, with not more than three dec
1mals, e. g., 99.925.

Fractions may not be used.

these bills will run for 365

(Notwithstanding the fact thai

days, the discount rate will be computed on a bru

discount basis of 360 days, as is currently the practice on all issues of Treasw
bills.)

It is urged that tenders be made on the printed forms and forwarded in

the special envelopes which 'tnll be supplied by Federal Reserve Banks or Branche I
on application therefor.
Banking institutions generally may submit tenders for account of customers
provided the names of the customers are set forth in such tenders.

Others than

TREASURY DEPARTMENT

January 19, 1965
!.QR IMMED IA TE RELEASE

TREASURY REFUNDS ONE-YEAR BILLS
The Treasury Department, by this public notice, invites tenders
for $1,000,000,000, or thereabouts, of 365-day Treasury bills, for
cash and in exchange for Treasury bills maturing January 31, 1965, in
the amount of $1,000,393,000, to be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided. The
bills of this series will be dated January 31, 1965, and will mature
January 31, 1966, when the face amount will be payable without
interest. They will be issued in bearer form only, and in
denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000
and $1,000,000 (maturity va lue) .
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty p.m., Eastern Standard time,
Tuesday, January 26, 1965. Tenders will not be received at the
Treasury Department, Washington. Each tender must be for an even
mUltiple of $1,000, and in the case of competitive tenders the price
offered must be expressed on the basis of 100, with not more than
three decimals, e. g., 99.925. Fractions may not be used.
(Notwithstanding the fact that these bills will run for 365-days, the
discount rate will be computed on a bank discount basis of 360 days,
as is currently the practice on all issues of Treasury bills.) It is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor •
Banking institutions generally may submit tenders for account of
customers provided the names of the customers are set forth in such
tenders. Others than banking institutions will not be permitted to
submit tenders except for their own account. Tenders will be
received without deposit from incorporated banks and trust companies
and from responsible and recognized dealers in investment securities.
Tenders from others must· be accompanied by payment of 2 percent of the
face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trus t company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
D-1480

- 2 range of accepted bids. Those submitting tenders will be advised of
acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders,
in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, noncompetitive tenders for
$200,000 or less without stated priced from anyone bidder will be
accepted in full at the average price (in three decimals) of accepted
competitive bids. Settlement for accepted tenders in accordance with
the bids must be made or completed at the Federal Reserve Bank on
February 1, 1965, in cash or other immediately available funds or in
a like face amount of Treasury bills maturing January 31, 1965. Cash
and exchange tenders will receive equal treatment. Cash adjustments
will be made for differences between the par value of maturing bills
accepted in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain
from the sale or other disposition of the bills, does not have any
exemption, as such, and loss from the sale or other disposition of
Treasury bills does not have any special treatment, as such, under the
Internal Revenue Code of 1954. The bills are subject to estate,
inheritance, gift or other excise taxes, whether Federal or State, but
are exempt from all taxation now or hereafter imposed on the principal
or interest thereof by any State, or any of the possessions of the
United States, or by any local taxing authority. For purposes of
taxation the amount of discount at which Treasury bills are originally
sold by the United States is considered to be interest. Under
Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954
the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise
disposed of, and such bills are excluded from consideration as capital
assets. Accordingly, the owner of Treasury bills (other than life
insurance companies) issued hereunder need include in his income tax
return only the difference between the price paid for such bills,
whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during
the taxable year for which the return is made, as ordinary gain or
loss.
Treasury Department Circular No. 418 (current revision) and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve' Bank or Branch.
000

TREASURY DEPARTMENT

January 19, 1965

Rl!PORr OF SUBSCRIPTIOllS FOR CtmRDl' ADVANCE

BD'tmJ)Im

The Treasury Department announced today the relults of the current advance refunding offer of:
4~

Treasury Bonds of 1970,
4-1/~ Treasury Bonds of 1974, and
4-1/4~ Treasury Bonds of 1987-92 (reopened issue),
in exchange for:

2-5/~ Treasury Bonds of 1965, due Februar,r 15, 1965,
'5-1/2~ Treasury Notes of Series ~1965, due November 15, 1965,

4~ Treasury Botes of Series 1-1965, due Bovember 15, 1965,
'5-5/fYfo Treasury Iotes of Series ~1966, due February 15, 1966,
'5-7/fI1, Treasury Notes of Series C-1966, due February 15, 1966,
'5-'5/4~ Treasury Bonds of 1966, due Mq lS, 1966,
3-'514.~ Treasury Notes of Series A-1967, due August 15, 1967, and
3-5/ fI1, Treasury Bonds of 1967, due November 15 I 1967.

SubSCriptions were divided among the Federal Reserve Districts and the Treasury
as follows:
4~ ~1m3

FBDERAL RESERVE
DISTRICT

Boston

OF 1970
$

Hew York
Philadelphia
Cleveland
RiclulK)nd
Atlanta
Chicago

St. lDu1s
Minneapolis
kansas City

reuu

San hanci8co

TreuUl7
Totals

118,1'55,500
1,841,668,000
127,168,500
342,731,500
110,588,500
151,926,500
775,784,000
156,309,000
114,264,500
16'5,174,000
137,627,500
296,065,500
43,261,000

$4,'578,704,000

4-1/fIfo ~ND3
OF 1974

Total

81,329,500
1,510,634,000
71,606,000
115,873,000
55,733,500
60,224,000
495,327,000
50,798,500
78,601,000
65,570,500
67,731,000
319,433,000
128,263,500

$ 52,244,500
1,750,680,000
3,550,500
86,569,500
17,668,500
1,975,000
134,828,000
7,857,500
5,682,000
4,601,500
25,121,500
172,868,000
3 , 084,500

$ 251,709,500

$3,101,124,500

$2,266,731,000

$9,746,559,500

(OVER)

D-1481

4-1/ 410 ~IIS
OF 1987-92

5,102,982,000
202,325,000
545,174,000
183,990,500
214,125,500
1,405,939,000
214,965,000
198,547,500
233,'546,000
230,480,000
788,366,500
174,609,000

-2-

SUMMARY OF AMOUM' AND NUMBER OF SUBSCRIPrIOR3 BY INVESTOR

CLASS RECEIVED IN JANU.ARY 1965 ADVANCE REFUNDING

(Dollar Amounts in Millions)

4~ Bonds
of 1970
Amount No. Sub.

Individuals

104

5,349

2,826

Totals

Commercial Banks
(Own account)
All others

Government
Accounts

4-1/~ Bonds

4-1/4~ Bonds

of 1974
Amount 10. Sub.

of 1987-92
Amount 10. Sub.
10

622

3,308

972

954

2,552

$2,776

9,506

3,646

7,309

1,768

1.1 127

4,113

$4,057

16,771

TOTAL
Amount Bo. Sub.

168

9,617

235

5,566

10,852

1,229

714

3,310

7,379

$2,211

1,571

$9,044

27,848

322

325

702

Grand Totals $4,379

$3,101

$2,266

$9,746

Include. partnerships and personal trust accounts.
Include. insurance canpanies, mutual savings banks, corporat10na exclws1ve of commercial banks, private penSion and retirement funds I pension, retirement and
other funds of State and local governments, and dealers and broker••

- 4 servant.

This is his third position in Government.

Be first

came to Internal Revenue fresh from school, serving four years
in the Legislative and Regulation. DtvialOl\ of ebe Chief

Counsel's office.

Then, leet year President Johnson selected

him to return to the Service as Chief Counsel from private
practice.

During that year he demonstrated his vigorous

administrative ability in reorganizing and streamlining the
procedures in that office.

At the same time he established

policies which have speeded up the rulings, regulations and
legislative processes, all aimed at the high purpose of providinj
more equitable administration of the tax laws.
The American taxpayer can be sure that. under the guid.aace

of Commissioner Cohen, the Internal Revenue Service will be

administered with competence and judgement.

- 3 Of great interest to thou.and. of executive. 1n the bueine••
field who know the value of accounting skill to t a adld.nlat... tl0

is the fact that Sheldon made an outstanding I'eco" 1ft tbia area
even before starting his professlcm.al career.

. . _jerect ia

accounting in his studies and later aucce ••fully paaaed the CPA
examination.

His whole academ.c carear haa been _

of great

distinction.
For eight years he was in the private practice .f 1. . with
two highly respected law firma here in W.ahiDgton.

I know

of no other way -- perhaps you could call it the bard va, Revenue regulations actually work

from the viewpoint of the taxpayer and the tax t..yar aDCI
accountants.
Sheldon 1s truly an axpertanced public

- 2 imagination and sound experience.
characterized

AlthDuab both . .y be

young _n, the)' bay. each haG , . . . . of . . . .
.of

preparation in the tax fi.ld.
Mitchell Rogovin joined the Interal Bavenue 1a 19S8 •••
trial lawyer in the Chief Ioun.el'. office after four ,.... of
legal work as an officer in the Unit.d State. Har1u

c.rp••

In addition to holding a law degree from the University of

Virginia, be earned hi. Master's degree in t.xat100 from
Georgetown University.
During the past thxee year. be .erved as
Conmiasioner and

Organizationa.

Aa8i.~ant

to the

Chala."'1D11Jl of the CoUDC11 on Tax-Exetapt

He bas discharged these md his other lepl

assignments with great competence.
In Sheldon Coheu President Johnson bu appointed a tax
lawyer of broad experience both inside and outside govemment.

lima J2£D

REMARKS . . SECllETARY DILLCII
AT SWEARING IN OF sm.noN s. COBIQ1

AS COMMISSIONER OF INTEIRAL IlEVINUI
A)fD

MITCHELL ROGOVIN AS
CHIEF COUNSEL, INTEBHAL REVENUE
IUUlAY, JANUAllY 25. 1965
3:30 P.M., ROOM 4121, MAtN TREASURY BUILDING

We are greatly honored in having Juatice Douglas admini.ter
tt~

oath of office to the first new officials of the Treaaury

Department to begin their service under President Jolm.8OQ'.

new Administration.
The appointment by the President of Sheldon S. COhen ••

Coamissioner of Internal Revenue, and Mitchell RDgovin •• hi.
Chief Counsel, charging them with the administration of thil

most

i~ortant

arm of our government, i8 one that indeed touches

the lives of mdllions of Americans.
It is most fitting that Justice Douglas, who hlmaelf

symbolizes vigorous and responsible government service on the
highest level, should perform this ceremony.
These gentlemen both bring with them

combination of v11O(.

TREASURY DEPARTMENT
Washington

REMARKS BY SECRETARY DILLON
AT
SWEARING IN OF SHELDON S. COHEN
AS
COMMISSIONER OF INTERNAL REVENUE
AND
MITCHELL ROGOVIN AS
CHIEF COUNSEL, INTERNAL REVENUE
MONDAY, JANUARY 25, 1965, 3:30 P. M.,
ROOM 4121, MAIN TREASURY BUILDING
We are greatly honored in having Justice Douglas administer
the oath of office to the first new officials of the Treasury
Department to begin their service under President Johnson's new
Administration.
The appointment by the President of Sheldon S. Cohen as
Commissioner of Internal Revenue, and Mitchell Rogovin as his
Chief Counsel, charging them with the administration of this most
important arm of our government, is one that indeed touches the
lives of millions of Americans.
It is most fitting that Justice Douglas, who himself symbolizes
vigorous and responsible government service on the highest level,
should per form this ceremony.
These gentlemen both bring with them a combination of vigor,
and sound experience. Although both may be
characterized as young men, they have each had years of sound
prepara tion in the tax fie ld .
~agination

Mitchell Rogovin joined the Internal Revenue in 1958 as a
trial lawyer in the Chief Counsel's office after four years of
legal work as an officer in the United States Marine Corps.
In addition to holding a law degree from the University of Virginia,
he earned his Mas ter' s degree in taxa t ion from George town
University.
During the past three years he served as Assistant to the
Commissioner and as Chairman of the Council on Tax-Exempt
Organizations. He has discharged these and his other legal
assignmen ts with grea t compe tence .

- 2 -

In Sheldon Cohen President Johnson has appointed a tax
lawyer of broad experience both inside and outside government.
Of great interest to thousands of executives in the business field
who know the value of accounting skill to tax administration is
the fact that Sheldon made an outstanding record in this area
even before starting his professional career. He majored in
accounting in his studies and later successfully passed the CPA
examination. His whole academic career has been one of great
distinction.
For eight years he was in the private practice of law with
two highly respected law firms here in Washington.
I know of no
other way -- perhaps you could call it the hard way -- of learning
how the Internal Revenue regulations actually work from the
viewpoint of the taxpayer and the tax lawyer and accountants.
Sheldon is truly an experiencedpublic servant. This is his
third position in Government. He first came to Internal Revenue
fresh from school, serving four years in the Legislative and
Regulations Division of the Chief Counsel's office. Then, last
year President Johnson selected him to return to the Service as
Chief Counsel from private practice.
During that year he
demonstrated his vigorous administrative ability in reorganizing
and streamlining the procedures in that office. At the same time
he established policies which have speeded up the rulings,
regulations and legislative processes, all aimed at the high
purpose of providing more equitable administration of the tax
laws.
The American taxpayer can be sure that, under the guidance
of Commissioner Cohen, the Internal Revenue Service will be
administered with competence and judgment.

000

TREASURY DEPARTMENT
WASHINGTON,
January 25, 1965

The Trea~;ury Department announced last evening that the tenders for two series of
TreasuIJl bills, one seriFs to be an ac1d1tjonal issue of the bjl1s dated October 29, 196
;::nd thp- other series to be dated January 2[:, 1965, which were offered on January 19, we
opRlIerl fit Lne f"ederDJ Ile~,('rve n!lnks on January 25.
Tenders ..!ere invited for ,~1, 200,00C
or ttwl'PHhollt,S, of 9l-dny lJi11s onrl for :n,OOCl,OOO,OOO, or thereabouts, of 182-day bill
'!'he (1~L;:lilfl 01" th~ two 8f'ri83 nre a,-; I'olJows:

) u?-day

'l'J'!';,:;ur,Y lldl S
___
HI_a. t.1l ~'2!.l~;,_~ ll~ _~~L.L~~,_._
A},prol.. I';'luiv.
['r1 cn
Annulll IiHte
')() • OJ!

1/}\.h' ~i' (II' ACCI'YI'I'iJ
C( Jr'lf"::'I' I 'I' I \/T: HIIC:

'Jl-dDj

I; i ':11
!'()It)

A.Vt'ral~(~

Ar )pro:x.

['ric,.
9t}.Cil()----

'J. o;,>~

')8.ooL

.0'[1

9£1.005

'J')

'J'rHl::ur.y b i.lIs

mntlJrirw
J1l1v
2~} __
19U;
._. __' ___
.. _. __ ...... _. __
.:.t........ _.::..1
..... __ _
F~qllh.

AtlTlual lUite

3.9367:-3.9L8;t
3.9h6

o( r,l e ,:\JI1')Unt or <)1-day bl lls bid fol' 8(, L1J8 low price was accepted
26 pr:rc(;nt of UJf~ 8mnunt of lA2-day bills birl for 3t thu low pricf) was accepted

1'/ percent

Ji-'tri r.t

-'---~-------

:~'J

;'JE;w '/ork
Fhil;-td8l! ,iJirJ.

If)( ,

2 1) , ()7~' ,( lO( J

: ':' ,( !, i: " ,UI )
'.J: ,I :r·' ,. "J()
.' '" ?:l) I, Ii)( J

Yi,f:/2,()Oc)
l' ,?9lt, DUO

'1'(}'j'A.L:~

"/ I , ( )

111) ,

I
(

__ ~'~~2.L~~~~~
;?, LM" , 1. 'J(, , ' " )( )

1,723,291,000

oe ,

,.,', /' .:., ,( J(J

: ',I

'lllf\('.'I[)()li';

HJ, 806,000
000
I)!, tl}~O, ouu

l)l , !.t
U()()
11 , 7I : 2 , OU! J
??, (()(" OUI)
1??, ')'((),:)U()

:)( I,I)()

A.;)pLic-d

----

'll~ 3, f9S,

Ll,'f' :J,"'l)

:·,(11.:.1

r.an: ,I:. [~:\ t~'
I):, JI :';;
ar, ·)';11l(:1;.('()

:~;

)1)0
,DO

j ',);:)(',

'h j~.}:.o

ti/

()O

;, r., e,h (J,

·j.chfllcrd

f.( )(),

1, LI h;), l.;lf), ;1)0

·~l eVI') clflrl
~

I,),

;;'or
~--liO~70S:000

Acc:p pt!:~ d

!.I,i'lif.-d "rn'

_Ha,

il,2Ul,078,OO()

g,335,00('
835,004,OO(
3,801,OOC

88,090,000
11, , (, 31 , 000

29,h24,()()(

Ih,r~?)I,CJ()()

6,074,OO(

YO,e(2,000

62,160,00'
12,273,00
),,9[\7,00
17,);;>6,00

3,739,CX)(.

18)~, 015,000

5,084,00
17,415,00

:f;2,u6l.t,716,ooo

$1,002,622,00

1(),08L,OOO

J79,()I)C)

12,274,000

1'; ,U 17 ,000
8, SJW( , (100
?'(,'(96,OOO

\; ,LnLI,U(JII

Accepted

:;??),',(a,Ul)() IlonCO[I.!)(;t,iLive t8f1den; accepted at 1.,1.8 av('raf~e prlce of 99.02
:l( ,(~'( ',IHY) lilinl:(m'l" ti.ti';(~ L;::nners aCC~pL(;d aC Llt8 clverLf~e price of 9fl.005
Un a cou[Jun issue of t.)iI~ s,ow;e 1enr~th and for the s;)we wnollnt invc'3t,ed, the return 0
t11C~;(, bill,. w01lld ,I'm' ide ,,'i,e1ds of 3.'jl~%, for the 'Jl-rlay bi lls, and L~.OC;>£, for the
'nC]l1i1'::';

! rjclu(le~;

It,2- d 3.Y [Jill::;. ;nl.f"}'p~it rat"::;; on hills are quoted in Vnr,:" of bank dj::;count with t
retUl'IJ re] cIted tr) UJr face :')jno. r,t ,)1' Ule ui1 1 s r~;).yable at maturity rather than the
~Ir,o, nt inv(-,E>teci arid I,llf: 1r l~n-~tL in actual. n\..imbe:r of days reLit.ed to a 360-day year
~rl c,)f1tri-l::t, ,lieJt!;; "fl ,:cr\.,ificdte:3, notp-::;, and bond,' arf' conouted in terms of inte
Oil L/.e amount ifW _.: L, d, c1.rt r j r"'l~,:£ t..t.e I\1Jl1bE:r of d;t:: :; l' i-,aj.ni~.g in an interest payrr
'
p',li ,)<1 VI the ac\"1,;.;Jl nUlIl('('r (11' <bJls in Lne period, ,1'tL ser'liannual compounding if rr
U,;l'

0nf~

coupon

p'~'ri(;1l

i::.; irlvolved.

TREASURY DEPARTMENT

fOR RELEl\.SE A.I-'. }n~,,'S~)APr.:R.'"J,
~esd~, Janua~ 196~,.

The Trea~;ury DenCl.rtment announced last eveninf, tilat tbe tenders for two serif s of
Treasury bills, OI?F~ serif'S to be an addiUona1 i~sue of thp. bHls d:j[,(u October ?<), 196Lt,
8Ild the other EE:rleS t.o he dated Januar~, 2['" 1965, whicb Here offered (lf1 JanuarJ 1<:1, were
opened at the b~ederDJ Hescr:e Ganks on January 2). Tenders Fere inviLE:0 for ,'l,r-()O,UO:),OCU,

or thereabouts, of 9l-day b-Llls and for ~.l,CIOO,OOO,OO(), or thereahouts, of le:'-dClY LilTs.
fhe details oj' thp two sf'ries are as follows:
ilANGE OF' ACCEY'I'I· D
COHP1:TJ'J'I'v T, 1-\ Il J..; :

liir;h

Low
Average

)l-du'yl'rea~;urJ bills
_ _m_a~t_uEj n~ April ?~J, 196:~
Anprox. Squiv.
Price
Annual Hate
99.031
3.833%

~'9.025

99.027

3.857;b
3.848%

182-do.y i'rc-a:;ury bj lIs
_ _m_aturing Jul~i 29, 1965
------ Approx.Equ:iV.
Price
ArlIlun1 ,-{ate
- 98.C)l0
3.93b~';

98.004

3.948~-b

98.005

3.946

17 percent of tte amount of 9l-day bHls bid fol' at the low price was accepted
26 percent of thR amount of 182-day bills bid for at the low pric p was accepted
T01'AL TENm:l-:S Al-'PlIr:D ;'OR AIm ACC:';P'l'L:D DY FimEJ<..A.L :(]o;UNF.

District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas Ci t;y
Dallas
San "'ran cisco

.l'.rplifc1 For
$ 1U,806, 100
1,L82,516"iOO
26,840 ,000
lY,iJ08,000
11, 7~:2,UOO
29,90),000
2t )6, oy; ,000

TOTALS

:~2,18J,198,oOo

35,f~;3,rJOO
22,~44,OOO

34,672,000
23,22/t,uOO
219,739,000

iJI

::TiiJCTS:

Accepted
:))
10,806,000
7iJ3,69S,000
lit,i:!4 0 ,000
19,w 0 8,ooo
11,7S2,000
22,606,000
122,970,000
29,072,000
Ib,L84,000
30,672,000
l'~
')94 ,000
. ,161,379,000

Applied For
$ 40 ,705,000
1,723,291,000
88,090,000
ili,631,000
18,52h,000
320,672,000
15,647,000
8,987,000
27,796,000
10,084,000
184,015,000

Accepted
$
5,335,000
83),004,000
3,801,000
29,L;)4,OOO
3,739,000
6,074,000
62,160,000
12,273,000
l~, 987,000
17,,326,000
5,084,000
17,415,000

~1,201,078,000 ~

$2,L64,716,000

$1,002,622,000

12,27L~,000

£I

:a/ Includes ~223,581,000 noncompetitive tRnders accepted at tlJe average p:-ice of 99.027

yInclu(leS

;;;97 ,620,000 noncompetitive tenders accepted at the average prl_ce of 98.005
y~ a coupon issue of the same length and for the same amount invested, the retlrrn on
these bills would provide yields of 3.94%, for the 91-day bills, and 4. 0 6:£, for the
162-day bills. Interest rates on bills are quoted in t6:nns of bank discount with the
return related to the face amount of the bills payable at maturity rather than the
mnolint invested and their lenr,th in actual number of days related to a 360-day year.
In contrast, yields on certificates, notes, and bonds are cor,lputed in tenns of interest
on the amount invested, and relate the nt:1l1ber of days rcmainir.g in an interest payment
period to the actual number of days in the period, with semiannual compounding if more
than one coupon period is involved.

DEPARTMENT
L

VVASHINGTON. D.C.

~~-.G '_'rc..:c.sury De)3.rb:ent announced last evening that tn.e tenders for Sl,OOO ,000 ,oae
or ""C.-",:..~",c:..~':;'1.:.vS, of 305-day 'Treasury bills to be dated J<illuary 31, 1965, and to mature
J&:::'~ry 32.; 1)06, u:":ich Here offered on Ja..'1uary 19, Here opened at the Federal R.eserve
5a:--jes c:-:. J&r. '..:.ar:{ 26.

'-;: :_S l:.2t&ils of tn.-:.s is sue are as follous:

Total applied for Total accepted

~c.n~e

:;/2,907,969,000
1,000,478,000

of accepted competitive bids:

~li~[J.
~O:·J
:_vel~age

(includes '.,:52,612,000 entered on a
noncoY,1.:Jetitive basis and accepted in
full at the average price shovffi below)
(~xcepting

one tender of $200,000)

96.c07 Equivalent rate of discount approx. 3.938;s per annum
I!
II
\I
II
II
II
3.947)~ II
95.998
\I
II
II
Ii
1I
II
t1
96.000
3.945;';

(92;'; of tn.e arr.ou.'1t bid for at the low -orice Has accepted)
?ederal ?.eserve
vistrict
Boston
l:GU

Yor~

?llilaci31phia
Cleveland
llicll::-.ond
Atlanta
Chicago
St. :;:'ouis
~'_ir...J.v;.eapolis

!iar;.sas City
:0allas
San Francisco
J:'OTAL

Total
Apnlied for
;i;i
51, i3 74,000
1,949,445,000
12,210,000
129,034,000
12,034,000
35,200,000
408,1l6,000
59,154,000
14,277 ,000
8,9C)6,000
33,472,000
192,841,000
.,,;2,907,959,000

Total
Accepted
~
1,874,000
659,742,000
1,L.16,000
52,454,000
2,085,000
4,663,000
177,510,000
9,029,000
3, 7Tf ,000
3,856,000
2,672,000
81,400,000
~1,000,478,000

On a cou)on issue of the S2.....l1e length and for tl:.e sa;T.e amount invested, the return 0
t:-::'",52 ';)ills HOula. provide a yield of 4.12;;. Interest rates on bills are quoted in
tC"-';lS of oall_~ c.iscow'Tt. ,·Ii th the return related to the face a."11ount of the bills paycole at ~aturity rather th~ the ~~ow~t invested and their len~th
in actual n~~ber
o
0: Cays related to a 360-day year. In contrast, }~elds on certificates, notes, and
oo:-.c.s are co:,:p-.;.ted in ter:::-.s of interest on the aJuount invested, and relate the numb
0: days re::J.ai:-~:c.g in an ir..terest paynent period to the actual number of days in the
~erii)d, ui t.h se;dan.-:ual cor:;.pounding if rr.ore tnan one coupon period is involved.

TREASURY DEPARTMENT

FOR RELEASE A. H. I~E\.JSPAPEaS ,

January 26, 1965

Wednesday, January 27, 1965.

rlESULTS OF

REFUNDIi~G

OF $1 BILLION OF ONE-YEAR BILLS

The Treasur,{ Depa,rtment announced last evening that the tenders for $1,000,000,000,
or thereabouts, of 36,-day Treasury bills to be dated January 31,1965, and to mature

January 31, 1966, which were offered on January 19, were opened at the Federal Reserve
Banks on Januar:l 26.

The details of this issue are as follows:
Total applied for Total accepted

,$2,907,969,000
1,000,478,000

rlange of accepted competitive bids:

(includes ~S2,612,OGO entered on a
noncompetitive basis and accepted in
full at the average price shown below)
(Excepting one tender of $200,000)

96.007 Equivalent rate of discount approx. 3.93i:U per annum
\I
II
n
11
II
II
3.947% "
95.998
\I
II
II
II
n
3. 945;t,
96.000
" ~/
"
(92;; of the amount bid for at the low price was accepted)
Total
Total
Federal rteserve
AcceEted
AEElied for
District
1,874,000
$
Boston
51,874,000
$
659,742,000
New York
1,949,LW5,000
1,416,000
12,216,000
Philadelphia
52,454,000
129,634,000
Cleveland
2,085,000
12,834,000
Richmond
4,663,000
35,200,000
Atlanta
177 ,510 ,000
408,116,000
Chicago
9,029,000
59,154,000
St. Louis
3,7Tf,000
14,277 ,000
Ninneapolis
3,856,000
8,906,000
Kansas City
2,672,000
33,u72,000
Dallas
81
192z841z000
San Francisco
2 4001,000
$1,000,478,000
~2,907,969,000
TOTAL
High
Low
Average

!/ On a

coupon issue of the same length and for the same amount invested, the return on
these bills would provide a yield of 4.12%. Interest rates on bills are quoted in
terms of bank discount with the return related to the face a~ount of the bills payable at maturity rather than the amount invested and their length in actual number
of days related to a 360-day year. In contrast, J~elds on certificates, notes, and
bonds are computed in terms of interest on the amount invested, and relate the number
of days re~ining in an interest payment period to the actual number of days in the
period, with semiannual compounding if more than one coupon period is involved.

D-1483

- 3 -

and exchange tenders will receive equal treatment.

Cash adjustments will be made

for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale
or other disposition of the bills, does not have any exemption, as such, and loss
trom the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code of 1954.

The bills are subject

to estate, inheritance, gift or other excise taxes, whether Federal or state, but
are exempt from all taxation now or hereafter imposed on the principal or interest
thereof by any State, or any of the possessions of the United states, or by any
local taxing authority.

For purposes of taxation the amount of discount at which

Treasury bills are originally sold by the United states is considered to be interest.

Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954

the amount of discount at which bills issued hereunder are sold 1s not considered
to accrue until such bills'are sold, redeemed or otherwise disposed of, and such
bills are excluded from consideration as capital assets.

Accordingly, the owner

of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such
bills,· whether on original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity during the taxable year for
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and govern the conditions of their.issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 -

decimals, e. g., 99.925.

Fractions may not be used.

It is urged that tenders

others than

banking institutions will not be permitted to submit tenders except for their
own account.

Tenders will be received without deposit from incorporated banks

and trust companies and from responsible and recognized dealers in investment
securities.

Tenders from others must be accompanied by payment of 2 percent of

the face amount of Treasury bills applied for, unless the tenders are accompanied
by an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made
by the Treasury Department of the amount and price range of accepted bids.

Those

submitting tenders will be advised of the acceptance or rejection thereof.

The

Secretary of the Treasury expressly reserves the right to accept or reject any
or all tenders, in whole or in part, and his action in any such respect shall
be final.

Subject to these reservations, noncompetitive tenders for each issue

for $200,000 or less without stated price from anyone bidder will be accepted
in fUll at the average price (in three decimals) of accepted competitive bids
for the respective issues.

Settlement for accepted tenders in accordance with

the bids must be made or completed at the Federal Reserve Banks on February 4,
1965

fi6f

, in cash or other immediately available funds or in a like face

amount of Treasury bills maturing _____F_e_b_ru_a-lW~;;"14r_l:.....9.;...65::...:...-----

Cash

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,

January 27, 1965

~
TREASURY'S WEEKLY BILL OFFERING

The Treasury Department, by this public notice, invites tenders for two seriel
of Treasury bills to the aggregate amount a£ $2,200,000,000
cash and in exchange for Treasury bills mat\lring
of $2,101,193,000
91

February 4, 1965

-day bills (to maturity date) to be issued
in the amount of

$1,200~,000

May W965

amount of $ 999'f&¥00

=w=

,or thereabouts, represent-

ing an additional amount of bills dated
and to mature

,in the amoun1

,as follows:

f4f

ts+

,or thereabouts, for

ffl

Nov~mbert&t

1964

, originally issued in the '

, the additional and original bills

to be freely interchangeable.

182 -day bills, for $1.000$:000 , or thereabouts, to be dated

(ll)

Febru~ 1965

,and to mature

August W65

•

The bills of both series will be issued on a discount basis under competitive
and noncompetitive bidding as hereinafter provided, and at maturity their face
amount. will be payable without interest.

They will be issued in bearer form only,

and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and

$1,000,000 (maturity value).
!enders will be received at Federal Reserve Banks and Branches up to the
clOSing hour,

on~-thirty

p.m., Eastern Standard time,

Monday. F e w 1. 1965

!enders will not be received at the Treasury Department, Washington.

Each tender

must be for an even multiple of $1,000, and in the case of competitive tenders the
price offered must be expressed on the basis of 100, with not more than three

TREASURY DEPARTMENT

January 27, 1965
FOR IMMEDIATE RELEASE
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$2,200,000,000,or thereabouts, for cash and in exchange for
Treasury bills maturing February 4, 1965, in the amount of
$2,101,193,000, as follows:
9~day bills (to maturity date) to be issued
in the amount of $1,200,000,000, or thereabouts,
additional amount of bills dated November 5,1964,
mature May 6, 1965,
originally issued in the
$999,960,000,
the additional and original bills
interchangeable.

February 4, 1965,
representing an
and to
amount of
to be freely

182-day bills, for $1,000,000,000, or thereabouts, to be dated
February 4,1965, and to mature Augus t 5, 1965.
The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided, and at
maturity their face amount will be payable without interest. They
will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000
(maturi ty value).
Tenders will be received at Federal Reserve Banks and Branches
up to the c lOSing hour, one-thirty p.m., Eas tern Standard
time, Monday, February 1, 1965.
Tenders will not be
received at the Treasury De?artment, Washington. Each tender must
be for an even multiple of $1,000, and in the case of competitive
tenders the price offered must be expressed on the basis of 100,
with not more than three decimals, e. g., 99.925. Fractions may not
be used. It is urged that tenders be made on the printed forms and
forwarded in the special envelopes which will be supplied by Federal
Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of
customers provided the names of the customers are set forth in such
tenders. Others than banking institutions will not be permitted to
submit tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
D-1484

- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Department of the
amount and price range of accepted bids. Those submitting tenders
will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders, in whole or in part, and his action in
any such respect shall be final, Subject to these reservations,
noncompetitive tenders for each issue for $200,000 or less without
stated price from anyone bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids
for the respective issues. Settlement for accepted tenders in
accordance with the bids must be made or completed at the Federal
Reserve Banks on February 4, 1965, in cash or other immediately
available funds or in a like fa~e amount of Treasury bills
maturing February 4, 1965. Cash and exchange tenders will
receive equal treatment. Cash adjustments will be made for
differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.

The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject to
estate, inheritance, gift or other excise taxes, whether Federal or
State, but are exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United states is conSidered to be
interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills are
sold, redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, aa ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this
notice prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained from
any Federal Reserve Bank or Branch.
000

-2-

Subscriptions from all others must be accompanied by payment of 2% (in cash,
or Treasury Bonds of 1965, maturing February 15, 1965, at par) of the amount of
notes applied for not subject to withdrawal until after allotment.
The Secretary of the Treasury reserves the right to reject or reduce any subSCription, to allot less than the amount of notes applied for, and to make different percentage allotments to various classes of subscribers; and any action he may
take in these respects shall be final. The basis of the allotment Will be publicly
announced, and allotment notices Will be sent out promptly upon allotment.
Subject to the reservations in the preceding paragraph, all subSCriptions from
States, political subdivisions or instrumentalities thereof, public pension and reti
ment and other public funds, international organizations in which the United States
holds membership, foreign central banks and foreign States, Government Investment
Accounts, and the Federal Reserve Banks, Will be allotted in full upon the submissio
of a written certification by the subscriber that the amount of the subscription doe
not exceed the amount of the maturing bonds owned or contracted for purchase for
value, at 4 p.m., Eastern Standard time, January 27, 1965. Should any such subscriber enter any subscription which does not carry the certification as to ownership of the eligible securities, any and all subscriptions received from such
subscriber will be allotted on the basis of the allotment to be publicly announced
for other classes of subscribers.
All subscribers are required to agree not to purchase or to sell, or to make
any agreements With respect to the purchase or sale or other dispOSition of any of
the notes subscribed for under this offering at a specific rate or price until after
midnight February 1, 1965.
Commercial banks in submitting subSCriptions will be required to certify that
they have no beneficial interest in any of the subscriptions they enter for the
account of their custooers, and that their customers have no beneficial interest
in the banks I subscriptions for their own account.

000

~}'~
I

)

TREASURY DEPARTMENT

FOR IMMEDIATE RELEASE

January 27, 1965

TREASURY ANNOUNCES FEBRUARY REFUNDING TERMS

The
21-month
November
Treasury
price of

Treasury will borrow $2,170 million, or thereabouts, through
4~ Treasury Notes of Series E-1966, dated February 15, 1965,
15, 1966, for the purpose of paying off in cash about $2,170
Bonds of 1965, maturing February 15, 1965. The notes are to
$99.85 (to yield about 4.09%).

the issuance of
and maturing
million of 2-5 1
be offered at ~

Interest will be payable on the notes on May 15 and November 15, 1965, and on
May 15 and November 15, 1966.
The notes will be made available in registered as well as bearer form. All subscribers requesting registered notes will be required to furnish appropriate identi~
ing numbers as required on tax returns and other documents submitted to the Internal
Revenue Service.
Payment and delivery date for the notes will be February 15. Payment may be
made in cash, or in 2-5/8% bonds of 1965, which will be accepted at par, in payment
or exchange, in whole or in part, for the notes subscribed for, to the extent such
subscriptions are allotted by the Treasury. Cash adjustments will be made for the
difference between the par value of maturing bonds accepted in exchange and the
issue price of the notes. In the case of registered bonds submitted in payment, the
final interest due on February 15, 1965, will be paid by the issue of interest check!
in regular course to holders of record on January 15, 1965, the date the transfer
books closed. The new issue may not be paid for by credit in Treasury Tax and Loan
Accounts.
The subscription books will be open only on Monday, February 1. Any subscriptions with the required deposits addressed to-a Federal Reserve-Bank or Branch, or
to the Treasurer of the United States, and placed in the mail before midnight,
February 1, 1965, will be considered timely.
Subscriptions from commercial banks, for their own account, will be restricted
in each case to an amount not exceeding 50 percent of the combined capital (not including capital notes or debentures), surplus and undivided profits of the subscribi
bank.
Subscriptions from commercial and other banks for their own account, Federallyinsured savings and loan associations, States, political subdivisions or instrumenta
ities thereof, public pension and retirement and other public funds, international
organizations in which the United States holds membership, foreign central banks and
foreign States, dealers who make primary markets in Government securities and report
daily to the Federal Reserve Bank of New York their positions with respect to Goven
ment securities and borrowings thereon, Government Investment Accounts, and the
Federal Reserve Banks will be received without deposit.

D-1485

(over)

TREASURY DEPARTMENT

fOR DtofEDIATE RELEASE

January 27, 1965

TREASURY ANNOUJIC&S FEBRUARY Rmnmlli1 TERMS

The Treasury will borrow $2,170 million, or thereabouts, through
n-lDOnth 4~ Treasury Notes of Series E-1966, dated February 15, 1965,
~wmber 15, 1966, for the purpose of paying off in cash about $2,170
Treasury Bonds of 1965, matur1D8 February 15, 1965. The notes are to
price of $99.85 (to yield about 4.09~).

the issuance of
and maturing
million of 2-5/'be offered at a

Interest will be payable on the notes on May 15 and November 15, 1965, and on
/IIy 15 and November 15, 1966.
The notes will be made available in registered as well as bearer form. All subscribers requesting registered notes will be required to furnish appropriate identifying numbers as required on tax returns and other documents submitted to the Internal
Revenue Service.
Payment and delivery date for the notes will be February 15. Payment may be
u~ in cash, or in 2-5/8~ bonda of 1965, which will be accepted at par, in payment
orexchange, in whole or in part, for the notes subscribed for, to the extent such
subscriptions are allotted by the Treasury. Cash adjustments will be made for the
Utference between the par value of maturing bonds accepted in exchange and the
iasue price of the notes. In the case of registered bonds submitted in payment, the
final interest due on February 15, 1965, will be paid by the issue of interest checks
in regular course to holders of record on January 15, 1965, the date the transfer
books closed. The new issue _y not be paid for by credit in Treasury Tax and Loan
Accounts.
The subscription books will be open op.ly on }tt)nday, F_e~~ry 1. Any subscriptions with the required dePOSit8 addressed to a Federal Reserve Bank or Branch, or
to the Treasurer of the United States, and placed in the mail before midnight,
February 1, 1965, will be considered tmely.

Subscriptions fram commercial banks, for their own account, will be restricted
in each case to an amount not exceeding 50 percent of the combined capital (not inclUding capital notes or debentures), surplus and undivided profits of the subscribing
bank.

Subscriptions from cODDercial and other banks for their own account, Feclerallyinaured savings and loan associations, States, political subdivisions or instrumentalities thereof, public pension and retirement and other public funds, international
organizations in which the United States holds membership, foreign central banks and
foreign States, dealers who make primary markets in Government securities and report
aaUy to the Federal Reserve Bank of New York their positions with respect to Governlent securities and borrowings thereon, Government Investment Accounts, and the
Federal Reserve Banks will be received without deposit.
D-1485

(over)

-2-

Subscriptions from all others must be accompanied by payment of ~ (in cash,
or Treasury Bonds of 1965, maturing February 15, 1965, at par) of the amount of
notes applied for not subject to Withdrawal until after allotment.
The Secretary of the Treasury reserves the right to reject or reduce any subsCription, to allot less than the amount of notes applied for, and to make different percentage allotments to various classes of subscribersj and any action he msy
take in these respects shall be final. The basis of the al.lotment will be publicly
announced, end allotment notices will be sent out promptl¥ upon allotment.
Subject to the reservations in the preceding paragraph, all subscriptions from
States, political subdiviSions or instrumentalities thereof, public pension end retir
ment and other public funds, international organizations in which the united States
holds membership, foreign central banks and foreign States, Government Investment
Accounts, and the Federal Reserve Banks, Will be allotted in full upon the submiSSion
of a written certification by the subscriber that the amount of the subscription does
not exceed the amount of the maturing bonds owned or contracted for purchase for
val.ue, at 4 p.m., Eastern Standard time, January 27, 1965. Should any such subscriber enter any subscription which does not carry the certification as to ownerShip of the eligible seCurities, any and all subscriptions received from such
subscriber Will be allotted on the basis of the allotment to be publicl¥ announced
for other classes of subscribers.
All subscribers are required to agree not to purchase or to sell, or to make
any agreements With respect to the purchase or sale or other disposition of any of

the notes subscribed for under this offering at a specific rate or price until after
midnight February 1, 1965.
Commercial banks in submitting subSCriptions will be required to certify that
they have no beneficial interest in any of the subscriptions they enter for the
account of their customers, and that their customers have no beneficial interest
in the banks' subscriptions for their own account.

000

TREASURY DEPARTMENT

January 28, 1965

FOR IMMEDIATE REIEASE
TREASURY DECISION ON AZOBISFORMAMIDE
UNDER THE ANTIDUMPING ACT
The Treasury Department has determined that azobisformamide
from Japan is being, or is likely to be, sold at less than fair
value within the meaning of the Antidumping Act.
Azobisformamide, sometimes called azodicarbonamide, is a
chemical blowing or foaming agent used in the production of
foam plastics.
Accordingly, this case is being referred to the United
States Tariff Commission for an injury determination.
Notice of the determination and of the reference of the
case to the Tariff Commission will be published in the Federal
Register.
The dollar value of imports received during the period
October 1963 through September 1964 was approximately $150,000.
No notice of a tentative determination with respect to this
matter was published in the Federal Register inasmuch as the tentative
determination was reached prior to the effective date of the recent
amendment of section 14.8(a) of the CUstoms Regulations.

TREASURY DEPARTMENT

January 28, 1965

FOR IMMEDIATE REIEASE

TREASURY DECISION ON AZOBISFORMAMIDE
UNDER Tf~ ANTIDUMPING ACT
The Treasury Department has determined that azobisformamide
from Japan is being, or is likely to be, sold at less than fair
value within the meaning of the Antidumping Act.
Azobisformamide, sometimes called azodicarbonamide, is a
chemical blowing or foaming agent used in the production of
foam plastics.
Accordingly, this case is being referred to the United
states Tariff Commission for an injury determination.
Notice of the determination and of the reference of the
case to the Tariff Commission will be published in the Federal
Register.
The dollar value of imports received during the period
October 1963 through September 1964 was approximately $150,000.

No notice of a tentative determination with respect to this
matter was published :in the Federal Register inasmuch as the tentative
determination was reached prior to the effective date of the recent
amendment of section 14.8(a) of the Customs Regulations.

TREASURY DEPARTMENT

January 28, 1965
FOR nt.mDIATE RELEASE
ANTIDUMPING PROCEEDING

(Ii

BICYCLES
On January 8, 1965, the Camnissioner of Customs

received information in proper form pursuant to the
provisions of section 14.6(b) of the Customs Regulations
that all shipments of bicycles imported from Poland, sold
by Universal, Warsaw, Poland, are being, or likely to be
sold at less than fair value within the meaning of the
Antidumping Act, 1921, as amended.
The infonnation was submitted by Howard A. Shlay,
Esquire, Chicago, nlinois.
An "Antidumping Proceeding Notice" to tl'ds effect
is being published in the Federal Register pursuant to
section 14.6(d) (1) (i) of the Customs Regulations.
The dollar value of imports received during the

period January 1 through November 30, 1964, was approximately

$67,000.

TREASURY DEPARTMENT

January 28, 1965
FOR ntlEDIATE RELEASE
ANTIDUYP;tNG PROOEEDING Ql

BICYCLES
On January 8, 1965, the Camnissioner of Customs

received information :in proper form pursuant to the
provisions of section 14.6(b) of the CUstcms Regulations
that all shipments of bicycles imported fram Poland, .sold
by Universal, Warsaw, Poland, are being, or likely to be
sold at less than fair value within the meaning of the
Antidumping Act, 1921, as amended.
The information was submitted by Howard A. Shlay,
Esquire, Chicago, Illinois.
An IfAntidumping Proceeding Notice" to th:js effect

is being published in the Federal Register pursuant to
section 14.6(d) (1) (i) of the Customs Regulations.
The dollar value of imports received during the

period Janu.ary 1 through November 30, 196.4, was approx:1lDately

- 5 1'1-J(; fact that he baa bean vitally inter•• ted 1D. _an

0.1;

auo alert to ttJ.e:&e ;\lEitters

before he .,.. t . . . .cI for

- 4 -

of tbe dollar wb1la at tile . . . t t . Htiafy1.n.a the needa of

iJa have w.tting for bi.lll

problems..

80Iae

especiall,.

1at.~8ating

He shall be happy to ahare with hill the aeed fft

tMI1y critical decisions on tIIIttera concerning lntere.t ret •• ,

international payments, gold. silver. curnmey. the public dek.
anC other sucb 1ively topic ••

Such problems do not loom OIId.noualy ahead d. him.

1118teacl.

he w111 find tbem to be suitable target. againat which to

his high aima and his .-ty skilla.

_edt

Tbua. Fred n.tDI 1ula . . . .t n t. . hi. . . .ed.~ til

areae ef actioa. and cow••tc.ti_.

A6tde4" t1d.a _

te • _

to wheal the cbal1enps of the job 1ftl1 , .... full of _ t . .
pCOlliae.

Thia ia good . . . . for die

problallie.

COQIlny'

bee._

the..

when there ... few is.ues to be flet or cri ...

NDnet:at:y Affairs doe. and Ny-t what be write. aad bow be inf. . .
the prea. and the pubUc, will establish

_lor guttlelt... '"'

There ia today a diatiJ:w:t iJap1:'OVealent in our debt structure.

- 2 afftl1atl. . with leuDe4 pa . . . . . . . lata . - . 1

-.ed._ 1.

teaohiDg ad lecturi..fta clearl" aipata Illa ,.n•• e. .tlal
the n1e of _ , . iD the

~u.

~...

eo_oede . . . . . .

be p1Ded valuable • .-d._ _ _ned ..... be

va_

wtt.

dd..f el •

barak,tng actvi80ry a ••lon to the Republto of JlDDduna

..s

1a~.r

the Central Bank COMultant to the lepubllc of CIll...
Yet another pbase of Fred Deming's

significant.

baek.gr~

_eaa

_at

Along with hi, work _d iDtereat lD the .....

aophieticated f18148 of finance aDd ecoDOaaf.oa. be baa

gt~

GlUCh of hi, t1.ul8 and ta14lDt to civic Mfa1" ead to actlriti••
dul&Qad to ialpsove the COla_itt. . 10. wh1ch his f.U.

cit!........t Uw, work and play.

Tbe.. iDtarut. c1earlJ

augeet hi. wader.teding _4 sympathy with the tv • •

of our

aoel.~y

today.

".lue.

REMARKS BY THE . . . . . . IJOUGLAS DDJ1W
SECUTARY OF THE TIUSUI.1'
AT SWEARlRC-IJi OF FREDDICit L. DDIDG AS

. . . . IlClIUII' •

nlA,." , .

WI l.tWI . .Alii

J1UDAY. JARUAltY 29. 1965. 12: 30 P .H.

ROOM 4121. HAUl 'l'R'EASURY ItJ'IU)DIG

for Moraetary Affait:a.

ADd . . baa oa1,. to 11. . . at fre4 Dlml".'.

record to reeopiae 'nataatiy J.d.. auitabt..llt, fer tt. title ...

Our oew UDder Seerecary baa beld • rap141, aec:eadial _141

l1at with the presidency of the Federal aeMrve Beak of

111uatrates hi. auitabil1ty to tbe Meoad part of the title -

and '"doer" in this field.

Ilia list of pub11cati.a. U.

TREASURY DEPARTMENT
Washington
REMARKS BY THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT SWEARING-IN OF FREDERICK L. DEMING AS
UNDER SECRETARY OF TREASURY FOR MONETARY AFFAIRS
FRIDAY, JANUARY 29, 1965, 12:30 P.M.
ROOM 4121, MAIN TREASURY BUILDING
I am happy to welcome into the Treasury a man whose entire
background fits him so well for his new job.
The position is, of course, that of the Under Secretary for
Monetary Affairs. And one has only to glance at Fred Deming's
record to recognize instantly his suitability for the title and
what it implies.
Our new Under Secretary has held a rapidly ascending scale
of important jobs in the Federal Reserve System, capping the
list with the presidency of the Federal Reserve Bank of
Minneapolis. A look into his earlier accomplishments further
illustrates his suitability to the second part of the title -Monetary Affairs. He has been an outstanding student, lecturer,
and "doer" in this field. His list of publications, his
affiliations with learned groups, and his actual experience in
teaching and lecturing clearly signals his preoccupation with the
role of money in the American economic scheme. Furthermore,
he gained valuable experience abroad when he was chief of a
banking advisory mission to the Republic of Honduras and later the
Central Bank Consultant to the Republic of China.
Yet another phase of Fred Deming's background seems most
significant. Along with his work and interest in the more
sophisticated fields of finance and eco~omics, he has given much
of his time and talent to civic affairs and to activities designed
to improve the communities in which his fellow citizens must live,
work and play. These interests clearly suggest his understanding
and sympathy with the human values of our society today.

- 2 Thus, Fred Deming has demonstrated his capacity in many areas
of action and communication. Added to this he is a man to whom
the challenges of the job will prove full of zest and promise.
This is good news for the country because there is never a
moment when the Treasury does not face a variety of problems, or
when there are few issues to be met or crises resolved.
Furthermore, he comes to the Treasury at a most interesting
time in its history, and in a position in which he can exert
a most significant influence. What the Under Secretary for
Monetary Affairs does and says, what he writes and how he informs
the press and the public, will establish major guidelines for
banking, financial and economic communities here and abroad.
There is today a distinct improvement in our debt structure.
Also, thanks in large measure to the oustanding accomplishments
of his predecessor, there exists a very real sense of international
economic cooperation among the major financial nations of the
world. We have come a long way, too, in the world-wide defense
of the dollar while at the same time satisfying the needs of
domestic economic growth.
We have waiting for him some especially interesting problems.
We shall be happy to share with him the need for many critical
decisions on matters concerning interest rates, international
payments, gold, silver, currency,the public debt, and other such
lively topics.
Such problems do not loom ominously ahead of him. Instead,
he will find them to be suitable targets against which to match
his high aims and his many skills.
The fact that he has been vitally interested in, aware
of, and alert to these matters long before he was tapped for
this job means that we should score new gains in. the future.
We are glad to have Fred Deming with us in Washington.

000

FREDERICK LEWIS DEMING
Under Secretary of the Treasury
for Monetary Affairs
BORN:

Des MOines, Iowa, September 12, 1912.

MARRIED:

Corinne Inez Wilson, February 4, 1935.

CHILDREN:

Frederick Wilson, December 29, 1935; Richard Louis,
December 25, 1936.

EDUCATION:

Woodward Grammar School, St. Louis, Missouri, graduated
June 1925; Cleveland High School, St. Louis, Missouri,
graduated June 1929; Washington University, St. Louis,
Missouri, A.B., June 1934, A.M., June 1935,
Ph.D. (economics), June 1942.

PROFESS IONAL
CAREER:

August 1941-Apri1 1957, Federal Reserve Bank of
St. Louis; assistant manager, research department,
1941-47; manager, research department, 1947-48;
assistant vice president, 1948-50; vice president,
1951-52; first vice president, 1953-57.
April 1957-January 1965, president, Federal Reserve
Bank of Minneapolis.
Nominated by President Johnson to be Under Secretary
of the Treasury for Monetary Affairs; confirmed by
the Senate on January 26, 1965; took oath of office
on January 29, 1965; and assumed his duties on
February 1, 1965.

OTHER:

,'AN -19S5

April-June 1956, Chief, banking advisory mission to
Chief of State, Republic of Honduras.
November-December 1960, central bank consultant,
Government of the Republic of China, Taipei, Taiwan.
Bi-State Development Agency, St. Louis (Missouri
commissioner) 1954-57.
Council on Foreign Relations, New York 1953 to present.
Member of board of trustees, Macalester College,
St. Paul, 1958-65 (president of board of trustees
1960-63)0
Vice president, Upper Midwest Research & Development
Council and chairman of its research committee, 1958-65.
Director, North Star Research Institute, Minneapolis,
1963-65.
Director, United Fund of Hennepin County, 1960-65
(president, 1960-61).
Chairman, Minnesota World Affairs Center, 1963-65.
President, Minnesota State Junior College Board,
1963 to present.
Trustee, Westminster Presbyterian Church, Minneapolis,
t359--65.
000

FOR RELEASE A.M. NEWSPAPERS
MONDAY, FEBRUARY I, 1965
REMARKS BY THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT THE 16TH ANNUAL DINNER, BROOKLYN DIVISION,
JEWISH NATIONAL FUND
HOTEL ST. GEORGE, BROOKLYN, NEW YORK
SUNDAY, JANUARY 31, 6:00 P.M., EST
I am indeed happy to be with you tonight -- at the invitatior
of my good friend Congressman Eugene Keogh -- and to join in
celebrating the continued success of the Jewish National Fund in
its great and humanitarian work of transforming barren wastes of
landm

Israel, into places green with trees, where abundant

crops can grow, and where men can settle and work and thrive o
The fruits of your good work are indeed impressive.

Since

1948, when the State of Israel came into being, more than 100,000
acres of land have -- through the efforts of your organization -been cleared, drained, and prepared for cultivation.

Over

70,000,000 trees have been planted to protect the soil from
erosion and to enrich the landscape o

More than 1,700 kilometers

of roads have been laid through terrain that is both mountainous
and rQck¥.A,To~ three quarters of a million people live on

-2land leased from the JNF.
You have begun a program to reclaim the barren and
unsettled north central portion of Israel and bring it within
the mainstream of Israel's growing economy.

More particularly,

this, the Brooklyn Division of the JNF, is engaged in a $2,000,001
project -- Kiryat Brooklyn -- to reclaim land next to the
Jordanian border in the north central portion of Israel.

I am

sure that not long after its completion three years from now,
Kiryat Brooklyn, peopled with thousands of settlers, rich in cultivated acreage and fruit trees, will more than fulfill your
hopes and}lstify your efforts.

It will serve as a living

testimonial to the excellent support the work of the Jewish
National Fund has always received from its Brooklyn Division -particularly under the leadership of such men as State Senator
William Rosenblatt, your Division President; Mro Isaiah 00 Zucker

-3=

and Mro Morris Putter, the Co-Chairmen of the Kiryat Brooklyn
Project; and Mro Henry Solomon, the Chairman of the Board of
the Brooklyn Division.
Your efforts, therefore, have done much and will do more
to help the State of Israel grow and prosper.
are justly proud of your success
and the obstacles have been many.

I know that you

for it has not been easy
The late President Kennedy

once stated -- and I quote -- that
"Just as our own West has sustained progress against
the impacts of serious farm depressions, crop failures,
credit crises and droughts, so, too, Israel has had to
exist on narrow margins of survival, in a constant
climate of hostility and outside dangero

Yet it has

endured and its integrity remains unimpaired, and
this success can be in a large measure attributed to

the Jewish National Fund o "

-4It is indeed fitting that the JNF is now honoring our great
President's memory through the establishment of the John F. Kennedy
Peace Forest near Jerusalem.
Private efforts by citizen's groups such as yours have been
accompanied by our Government's efforts to help the people of
Israel build a free and prosperous country.

To speak only of

one current matter involving my own Treasury Department, delegations from the United States and Israel reached agreement last
October on the substantive provisions of an income tax treaty
to promote trade between the two countries and to encourage
United States private investment in Israel.

This treaty provides,

among other things, that the United States will grant to its
taxpayers who invest in qualified enterprises in Israel a tax
credit equal to 7 percent of their capital investments in those
enterprises. In other respects as well, this treaty -- which will

-5-

shortly, we hope, be ready for signature by both governments and
then for final approval by the United States Senate and the
Israeli Parliament -- should serve as a decided spur to greater
American private investment, and thus greater economic growth,
in Israe1

I am hopeful that 1965 will see the formal signature and
ratification of that treaty by both countries.

I know that

theyear will bring continued success to your efforts to give
new life to barren earth in Israel.
Here at home, 1965 promises to be among the most fruitful
in our history -- a year in which we make new beginnings toward
reclaiming barren or blighted aspects in our own national life,
toward creating that America of social well-being that we have long
dreamed of and left

too

long unrealized, toward the building of that

Great Society to which President Johnson has summoned the nation
anew.

-6We have in recent decades met and mastered crises and
challenges upon whose resolution rested our future as a nation
and the fate of the world.

The Great Depression, the Second

World War, the cold war -- these have been all-encompassing
problems whose solution has required our alert and undivided
attention, our utmost energies and all our resources.

But while,

in certain crucial respects, the times are now more dangerous thar
ever -- for today we live always under the shadow of a nuclear
cloud, as the Cuban missile crisis taught us not so long ago,-they are also more calm.
For we have learned to live with the cold war, and to
accept the burdens and pressures our nation must bear as the
leader of the free world.

We have largely accomplished our

freely chosen task of helping rebuild and rejuvenate a Europe
ravaged by war, and we can expect that in the future Europe will

-7assume more of the burden of helping the underdeveloped countries
of the world pursue their own destinies in freedom and economic
well-being.
And at home we are just completing our fourth year of
sustained economic upsurge -- the longest period of peacetime
growth in our history.

Since the start of the Sixties, our

total national output -- measured in constant dollars -- has
grown by more than one-fifth.

Jobs and incomes, profits and

investment have reached new highs with almost monotonous
regularity.

And we have shielded these gains from the blight

of inflation by maintaining a record of price stability unexcelled anywhere in the world o
To be sure, no one imagines that we have conquered the
business cycle, either for the time being or for all time.

Nor

can we claim to have solved all our economic problems, for we

-8still have many.

But we have learned over the past four years

that recession is not inevitable, and we have come to a new
confidence in our ability to keep the American economy moving
in all kinds of weather.

In short, we stand on economic ground

firm enough for us to turn our attention -- far more than ever
before in our history -- to mounting a concentrated, reasoned
and vigorous attack upon some of the acute social problems too
long obscured or ignored in the life of our land.
Never have our prospects for success in that venture been
brighter.

For not only have we an abundance of technical,

social and economic resources, but we have arrived, I think, at
a new national resolve to translate good intentions into
practical and effective action.

We have arrived at a new

understanding that in efforts of this kind success does not, and
cannot, come all at once, but comes slowly, often grudgingly,

-9-

and over long periods of time.

In a word, we have arrived at a

new and dynamic realism in our approach to the social problems
confronting us -- and, in so dOing, we have abandoned any resort
to sweeping, impractical panaceas as either substitutes for
action or excuses for inaction.

As President Johnson's proposals

well demonstrate, we have discovered that to be bold, we need not
be rash -- that to be practical or prudent, we need not be timid.
The list'o£ problems in our society is long.

But in any

such list, the three most crucial problems -- those which underly
and encompass all the rest -- are proverty, prejudice and ignorance.
In launching the War on Poverty and in leading the struggle
tor adoption of the Civil Rights Act last year, President Johnson
helped awaken and arm the conscience of the nation against
poverty and prejudice as never before.

All of us, I

think are

becoming more acutely aware of how impossible it is to insulate

-10-

ourselves behind a wall of unconcern -- for in such matters,
as events have taught us, unconcern is complicity, and to ignore
the injustices of poverty and prejudice is to condone them.
As our moral vision is becoming sharper and clearer, and
our conscience more aroused, we are also beginning to see how
deep and pervading is the injury of poverty and prejudice to
our national life.

We are beginning to understand how these

evils rend, not only the moral and social fabric of our society,
but its economic fabric as well.

We are beginning to become

aware of how these evils impoverish the lives of all of us
economically as well as morally.
Thirty-five million Americans -- one out of every five citizens
of the world's wealthiest nation -- live in poverty.

They not

only fail to share adequately in the abundance enjoyed by the
large majority of Americans, but they cannot contribute to our

-11-

nation's life and growth as fully as other Americans.
it purely in terms of dollars and cents:

To put

Two-thirds of our

poor families have an average income of $2,000 or less.

this could be raised just beyond $3,000 -- just over the poverty
line -- their total annual income would be $7 billion higher.
As they spent this money in the local grccery or clothing store,
and the local store owner in his turn spent this money, and
the money was thus spent and respent throughout the economy, it
would lift the nation's total annual output by an estimated
$14 billion a year -- with all the extra jobs, incomes and
profits that would mean.
On economic, therefore, as well as human grounds, poverty
exacts from all of us a considerable price.
prejudice.

And so does racial

Almost half of our non-white population lives in

-12poverty, as compared with 16 percent of our white population.
Unemployment figures tell much the same story.
for

examp~e,

Last year,

non-white workers had more than twice the unem-

p10yment rate of white workers.
Prejudice and poverty mean only limited educational opportunities for Negroes

and others.

Because of limited educational

opportunities and the color line drawn at far too many emp1oyment doors, Negroes and others find themselves largely shunted
off to lower-paying semi-skilled and unskilled jobs.

And

then, for the children of these Americans, begins the same
vicious cycle in which their parents were caught:

for prejudice

and poverty will deprive them, too, of their full educational
opportunities, and prejudice and inadequate education will
limit them to low-paying jobs o

And caught in this vicious cycle

as well is the nation's economy -- for discriminatio~, as

-13-

President Johnson has said, costs this nation nearly $20
billion a year, with all the jobs and incomes, profits and
investment, and untold opportunities, that amount would mean.
In a report issued at the beginning of this month, the
Anti-Defamation League of B'nai B'rith said -- and I quote:
"At the very threshold of the Great Society looms a
stubborn obstacle -- the residue of prejudice left by
the long years of human slavery and segregation ••••
What law can do to outlaw discrimination, the bipartisan Civil Rights Act of 1964 has largely done
.oo.But the urgent task now is to translate the law
into realization.

t~at

end it must be effectively

enforced; it must be supplementd by enlightened
community practices and attitudes.ooo

-14For, as the report goes on to say, "the demands of equality
of opportunity are not quite satisfied when the law opens the
door and says,'All may now enter', if some are made to carry
on their backs the burden of inherited poverty and educational
deprivation."
In any effort to wipe out poverty and prejudice, there is
no greater obstacle than ignorance -- no greater ally than
education.

Two-thirds of those families whose breadwinner

has had eight years or less of schooling live in poverty.

Un-

employment among young people in the 18-24 age group with an
eighth grade education or less is close to twenty percent -nearly twice as high as the national average for the entire
18-24 age brackets.

Yet, to cite statistics such as these --

as if the story they tell were not stark enough -- is barely
to suggest how huge and critical is the educational challenge
that confronts the nation today.

For the costs of education

are rising, and our educational resources -- at all levels __

-l5~

are already sorely over-burdened at a tLme when our young
people are reaching school age in enormous numbers and our
society more and more demands skilled and trained talent.
We are moving vigorously to meet this challenge.

Already

President Johnson has signed legislation giving education in the
United States its largest forward stride since land-grant
colleges were established almost a century ago.

And in his

Education Message just three weeks ago he presented a program
that, more perhaps than any in our history, would hasten that
day in our land when ability to learn, rather than ability to
pay, will be the sole standard of educational opportunity -when every child will have the opportunity, in the President's
words, lito get as much education as he hasthe ability to take."
The tasks, then, ahead of us are great, and so are the
opportunities.

Never has the vision of that Great Society

-16President Johnson has portrayed had better prospect of
approaching so near to achievement.

But how near it approaches

to achievement must depend not upon the efforts of Government
alone, but also upon the united efforts of private citizens, of
States and localities, upon the personal efforts of every
American, to help reclaim those aspects of our national life
laid waste by poverty, prejudice, ignorance and all other
sources of needless human suffering.
Thus can we replenish the well-springs of our country's
greatness, and give new life to our land as the place beyond
all others where men and men's hopes can flourish in all
freedom and dignity and justice.

000

u.s.

Treas.
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Treasury Dept.

Press Releases

Treas.
HJ

10
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U.S. Treasury Dept.

AUTHOR

Press Releases
TITLE

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DATE
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Full text of Press Releases of the United States Department of the Treasury : Volume 146

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